Complicating the closure of the Gupta accounts by Baroda is the extent of the loans it has made to the family
The Bank of Baroda has indicated that it would close the accounts of the controversial Gupta family at the end of August, but the family is said to intend interdicting the bank from doing so.
Four major banks in SA closed the family’s accounts in 2016, with the Bank of China following suit mainly because it viewed the family as politically exposed. In an affidavit filed in October 2016, former finance minister Pravin Gordhan disclosed that R7bn in “suspicious and unusual transactions” had gone through Gupta-linked accounts and were reported to the Financial Intelligence Centre.
Complicating the closure of the Gupta accounts by Baroda is the extent of the loans it has made to the family. The initial closure was meant to take place at the end of March. It has been closing its transactional accounts but the difficulty has been the large loan accounts.