07 Mar 2018
A bank in South Africa has denied re-opening the accounts of companies belonging to the controversial Gupta brothers.
The companies could be liquidated if banking facilities cannot be found.
Earlier today it had looked as if the South African banking giant, Standard Bank, was throwing the Gupta-owned companies a lifeline by offering to re-open their accounts – accounts that have been closed since June 2016.
The firms in question have been in what’s called “business rescue” since mid-February.
Business rescue is usually entered into by financially distressed companies who are battling to pay their debts and face possible bankruptcy.
The difference with the eight Gupta-owned firms, which include two mines, is that while they are not technically insolvent, they lack access to banking facilities, as over the past two years or so the major South African banks turned their backs on them amid allegations of corruption – allegations the Gupta brothers have always strenuously denied.
In the last hours Standard Bank has denied re-opening the accounts, saying no such action was planned.
Source – BBC Africa Highlights, 6 March 2018, 13:34 pm
You can claim CPD minutes for reading this article, by signing up to our CPD WalletFREE CPD Wallet