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Cape Town - A mystery Asian bank is still servicing Oakbay Resources, while the group's remaining local banking service provider has also ditched the company.
First National Bank (FNB) was the latest firm, following Absa Bank, sponsor Sasfin Capital and auditor KPMG to have severed ties with the wealthy Guptas' family business.
Oakbay Resources on Friday pointed out that FNB terminated its service offering to the company's holding company, Oakbay Investments Proprietary Limited.
It is believed that Oakbay Investments holds an 80% stake in Oakbay Resources.
"FNB has not provided banking services to the company and its subsidiaries [the group] since its listing on the exchange operated by JSE in November 2014", it said.
It also revealed that as of Thursday April 7, the group's remaining local banking service provider has also given notice regarding the termination of their banking services. This will come into effect from June 6.
Oakbay Resources was optimistic that the terminations will not impact the operations of the group and the company, adding that it still has the backing of a unnamed Asian bank.
"Despite the cessation of the provision of services by the major local banks, the group continues to be serviced by a major Asian bank with a presence in South Africa, which bank has requested that the company not communicate their name in this update,"it said.
"The company is confident that the remaining banking relationship is sufficient to fully service the operational requirements of the group".
FNB head of risk Nainesh Desai reiterated to Fin24 that it has no banking account with Oakbay Investments.
"We can further confirm that we have given reasonable notice to close various banking accounts of entities that may be associated with Oakbay Investments."
Standard Bank spokesperson Ross Linstrom told Fin24 it does not comment on its relationship with customers or potential customers to protect client confidentiality.
"As such Standard Bank can neither confirm nor deny that it has business relationships and dealings with Oakbay."
Capitec spokesperson Charl Nel indicated that the bank does not offer business banking. "We do not do business banking. We only offer services to the individual."
Earlier on Friday the Guptas made the shock announcement that brothers Ajay and Atul will be stepping down from their posts in Oakbay Investments and Oakbay Resources.
Economist Dawie Roodt told Fin24 it is difficult to understand the rationale behind this move.
"The will no longer have a direct impact on the business but they can now indirectly influence the business," he said.
"It would have been a different case if the Guptas announced that they were selling their stake in Oakbay."
Ajay and Atul were the co-chairs of Oakbay Investments, while Atul was the chair of Oakbay Resources and Energy. Varun Gupta was the CEO of Oakbay Resources and Energy.
President Jacob Zuma’s son Duduzane also resigned with immediate effect from all Oakbay companies and exit his investments.
Board member Terence Rensen will become Oakbay Resources chairperson, while finance director Trevor Scott will become Oakbay Resources acting CEO until a new candidate is selected to fill the vacant positions.
In a leaked letter to media, Oakbay Investments CEO Nazeem Howa told staff that the closure of its bank accounts made difficult to continue doing business in the country.
"Without bank accounts we may find ourselves in a position where we are unable to pay you‚ our valued employees,” he said. “We are doing everything in our power to ensure this does not happen.
“We find it totally unacceptable that you‚ our employees‚ and your families could potentially have to suffer as a result of the political campaign against us."
The Gupta family has come under attack over allegations that they influenced Zuma's appointment of Mines Minister Mosebenzi Zwane and former finance minister Des van Rooyen, as well as offering ministerial posts to Deputy Finance Minister Mcebisi Jonas and former ANC MP Vytjie Mentor.
