Gupta company’s Indian banking partner’s role ‘was highly suspicious’
The state-capture report highlights a “highly suspicious” role played by India’s Bank of Baroda in a Gupta company’s R2bn purchase of Optimum Coal Holdings
India’s Bank of Baroda played a "highly suspicious" role in the R2bn purchase of Optimum Coal Holdings by Gupta-owned Tegeta Exploration & Resources‚ says former public protector Thuli Madonsela’s state-capture report. In "observations" on whether any organ of state had acted unlawfully‚ improperly or corruptly in offering financing facilities to the Guptas‚ she says: "In December 2015 the loan consortium requested Tegeta to provide proof of funding to consider its offer. "Despite‚ at the time‚ having an existing established banking relationship with two of the biggest banks in SA‚ Tegeta decided to use the Bank of Baroda as its partner to execute the payment required to purchase (Optimum). "On 4 March 2016 the Bank of Baroda issued an untitled letter to FirstRand Bank limited setting out that Tegeta was its client and that it would affect payment of R2.15bn on certain conditions. "However‚ financial analysis confirms that the Bank of Baroda did not grant a loan to the value of R2.1...
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