by James Tweedie
The wealthy Gupta family sought meetings on Tuesday with South African banks that have boycotted their business group, jeopardising thousands of jobs.
Since last week banks Absa, FNB, Nedbank and Sasfin and auditing transnational KPMG have all cut off business relations with Gupta companies Oakbay, Sahara Holdings and TNA in an unprecedented boycott over their alleged relationship with the ruling African National Congress (ANC).
The banks' move also coincided with oppositions parties' failed attempt at regime change through a parliamentary impeachment motion against President Jacob Zuma.
Oakbay Investments CEO Nazeem Howa said he hoped to reopen accounts with at least one bank following the meetings.
"We will start setting up meetings with banks on Tuesday to try and restore those relations because the lives of 7,500 employees are at stake," Mr Howa told Reuters.
The Indian-South African family came under fire earlier this year from sections of South Africa's national liberation alliance of the ANC, Congress of South African Trade Unions (Cosatu) and South African Communist Party (SACP).
The key National Union of Mineworkers (NUM) and the SACP raised concerns at an ANC “lekgotla” (assembly) over rumours that the government was intervening on behalf of the Guptas to help them buy up flagging mine companies.
On Monday Cosatu demanded answers form the banks after the Guptas' group of companies met with the federation to discuss the looming redundancies.
While expressing little sympathy for the big-business family, Cosatu spokesman Sizwe Pamla reminded bankers of the legal principle of innocence until proven guilty.
The SACP was also scathing of the banks. Spokesman Alex Mashilo said: “Acting together with an imperialist monopoly KPMG, the private banking monopoly has shown its dangerous and collusive market conduct against one of their private mould.”
In March the Guptas faced allegations of “state capture,” with businessman Johann Rupert, heir to apartheid-era billionaire Anton Rupert, and others claiming the family were dictating cabinet appointments to the government.
Mr Rupert himself faces allegations of blackmailing the government over December's appointment of Douglas Van Rooyen as finance minister, replacing Nhlanhla Nene in the post.
The resulting media frenzy then forced President Jacob Zuma to reverse his decision and appoint establishment-approved veteran Pravin Gordhan to the post.
Insinuations of a cosy relationship between the government and the Guptas have been made in the South African media since the family founded The New Age, the only pro-ANC paper in the country, challenging the established media barons.
The Guptas also saved 600 jobs in Britain's crisis-hit steel industry last December when they bought up part of the ailing Caparo business empire in the West Midlands.
The wealthy Gupta family sought meetings on Tuesday with South African banks that have boycotted their business group, jeopardising thousands of jobs.
Since last week banks Absa, FNB, Nedbank and Sasfin and auditing transnational KPMG have all cut off business relations with Gupta companies Oakbay, Sahara Holdings and TNA in an unprecedented boycott over their alleged relationship with the ruling African National Congress (ANC).
The banks' move also coincided with oppositions parties' failed attempt at regime change through a parliamentary impeachment motion against President Jacob Zuma.
Oakbay Investments CEO Nazeem Howa said he hoped to reopen accounts with at least one bank following the meetings.
"We will start setting up meetings with banks on Tuesday to try and restore those relations because the lives of 7,500 employees are at stake," Mr Howa told Reuters.
The Indian-South African family came under fire earlier this year from sections of South Africa's national liberation alliance of the ANC, Congress of South African Trade Unions (Cosatu) and South African Communist Party (SACP).
The key National Union of Mineworkers (NUM) and the SACP raised concerns at an ANC “lekgotla” (assembly) over rumours that the government was intervening on behalf of the Guptas to help them buy up flagging mine companies.
On Monday Cosatu demanded answers form the banks after the Guptas' group of companies met with the federation to discuss the looming redundancies.
While expressing little sympathy for the big-business family, Cosatu spokesman Sizwe Pamla reminded bankers of the legal principle of innocence until proven guilty.
The SACP was also scathing of the banks. Spokesman Alex Mashilo said: “Acting together with an imperialist monopoly KPMG, the private banking monopoly has shown its dangerous and collusive market conduct against one of their private mould.”
In March the Guptas faced allegations of “state capture,” with businessman Johann Rupert, heir to apartheid-era billionaire Anton Rupert, and others claiming the family were dictating cabinet appointments to the government.
Mr Rupert himself faces allegations of blackmailing the government over December's appointment of Douglas Van Rooyen as finance minister, replacing Nhlanhla Nene in the post.
The resulting media frenzy then forced President Jacob Zuma to reverse his decision and appoint establishment-approved veteran Pravin Gordhan to the post.
Insinuations of a cosy relationship between the government and the Guptas have been made in the South African media since the family founded The New Age, the only pro-ANC paper in the country, challenging the established media barons.
The Guptas also saved 600 jobs in Britain's crisis-hit steel industry last December when they bought up part of the ailing Caparo business empire in the West Midlands.