Oakbay Resources and Energy announced on Friday that Atul Gupta, its non-executive chairman, and Varun Gupta, chief executive officer, had resigned from all group companies with immediate effect “in the best interests of the company, its shareholders and employees”.
A statement from the company added that President Jacob Zuma’s son, Duduzane, had resigned as non-executive director of Shiva Uranium, a major subsidiary of the company.
This comes after a series of snubs from corporate South Africa over allegations of “state capture” by the controversial Gupta family, and their alleged influence over government through close ties to the president and his family.
The company, an investment vehicle in the world of mining and exploration, owned by the Gupta family, on Wednesday confirmed that First National Bank (FNB) had become the second bank to cancel the company’s business accounts after Absa had cut ties with the firm earlier this week.
Less than a week earlier, KPMG had resigned as Oakbay Resources auditors with immediate effect after 15 years, citing “risk of association”, while banking partner Sasfin Capital had also given firm notice of their intention to terminate services effective from June 1.
Friday’s statement about the resignations read: “This decision follows a sustained political attack on the company, and the concern that the jobs and livelihoods of nearly 1,000 employees would be at immediate risk as a result of the outgoing directors’ association with the company.”
Oakbay Resources director Nazeem Howa had been bullish on Wednesday after the FNB announcement. He had challenged the company’s detractors, whom he called “purveyors of the numerous false allegations”, to provide evidence of wrongdoing against the company.
“It is time to put up, or shut up,” Howa said.
The current crisis was set in motion in March when South African Deputy Finance Minister Mcebisi Jonas confirmed reports that the Gupta family had approached him to take over as finance minister a few days before Nhlanhla Nene was fired from the post in December.
President Zuma has denied any wrongdoing at all and rejected out of hand mounting calls to fall on his own sword.
– African News Agency (ANA)
