Guptas complain against banks, but avoid Banking Ombudsman

The Gupta family owned Oakbay Investments has filed a complaint with the office of the National Consumer Commission after the country's top banks decided to close the company's accounts.

The commission spokesman Trevor Hattingh confirmed yesterday that commissioner Ebrahim Mohamed had received a letter from Oakbay Investments chief executive Nazeem Howa.

He declined to divulge the contents of the complaint.

However, the Banking Ombudsman, Clive Pillay, told Sowetan that the Gupta family had thus far failed to take advantage of the organisation's free service.

The South African Reserve Bank has advised that market misconduct and consumer disputes can be referred to the commission or the Banking Ombudsman.

The complaint by Jacob Zuma's friends comes after Standard Bank, ABSA (Barclays Africa), First National Bank and Nedbank recently issued Oakbay Resources and Energy - the company belonging to the Gupta family - with notices to close bank accounts relating to the businesses associated with the owners of The New Ageand African News Network7.

This resulted in the company facing a liquidity crisis and its ability to pay service providers and workers being threatened and trade union federation Cosatu criticising the financial institutions.

Cabinet has appointed ministers of finance Pravin Gordhan, mineral resources Mosebenzi Zwane and labour Mildred Oliphant to intervene over the closing of the accounts of the company.

Minister in the Presidency Jeff Radebe said last week: "Cabinet noted the actions by the four banks that gave notice to close the bank account of a company.

"Whilst Cabinet appreciate the terms and conditions of the banks, the acts may deter future potential investors who may want to do business in South Africa."

sibanyonim@sowetan.co.za