Legalbrief | your legal news hub Friday 01 October 2021

Howa quits as Gupta dossier raises hackles

As storm clouds gather over its banking transactions, the politically-connected company, Oakbay Investments, took another big hit yesterday when it lost CEO, Nazeem Howa, who resigned due to ill-health. The company also signalled it was considering challenging Finance Minister 's application in the Gauteng High Court () to declare that he is not by law empowered or obliged to intervene in the relationship between the family and the four major banks, notes Legalbrief. The company said Howa would be replaced temporarily by Oakbay’s financial director Ronica Ragavan until a permanent appointment was made. A Business Day report notes Howa’s resignation was announced only hours after Oakbay Investments said allegations it had plundered the rehabilitation trust account of its recently acquired Optimum coal mine were ‘absolutely untrue and defamatory’. The Gupta family’s JSE-listed company, Oakbay Resources, said it was investigating five transactions reported to the Financial Intelligence Centre, but did not believe it would have to restate its financial statements. The storm has erupted as a result of documents filed in support of Gordhan’s affidavit on Friday explaining why the government should not intervene to compel SA’s major banks to reinstate the Gupta family’s accounts. They detail suspicious transactions totalling almost R7bn, including an application to transfer R1.5bn in Optimum mine’s rehabilitation fund held at Standard Bank to the Bank of Baroda. This transfer required approval from Mineral Resources Minister Mosebenzi Zwane. His office and the Department of Mineral resources failed to respond to calls and e-mails yesterday, says the report.