EDITOR’S NOTE: The spin behind the collapse of Gupta-linked bank deal
Is it a coincidence that as a bank takeover linked to the Guptas flounders, talk is growing of the need for radical economic transformation?
A nasty war of words appears to be brewing between the Reserve Bank and the aspiring buyers of the Habib Overseas Bank, Hamza Farooqui and a business partner of the Gupta family, Salim Essa. Two weeks ago, this magazine reported how their company, Vardospan, offered to pay a pricey R327m to buy the small 27-year-old bank.It was always going to be a contentious transaction, given that Essa is a business partner of the Gupta family who, avid readers of Pravin Gordhan’s affidavits will know, were implicated in R6.8bn-worth of “suspicious transactions”, according to money laundering watchdog, the Financial Intelligence Centre. Late last week, it emerged that banking registrar Kuben Naidoo had recommended to Gordhan that the deal be blocked, unnamed officials told Bloomberg. The sticking point, according to government officials who spoke to the Financial Mail this week, is the Banks Act stipulation that any “controlling shareholder” of a bank must be a “fit and proper person”. Essa’s li...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.