JOHANNESBURG: The Federal Bureau of Investigation has opened enquiry into South Africa's Gupta family's links to the US. The update has only helped escalate an ongoing political scandal over the three brothers' alleged use of their friendship with President Jacob Zuma to control state business. FBI investigators have begun probing individuals, bank accounts and companies in the US for ties to alleged graft involving Ajay, Atul and Rajesh Gupta, in recent months.
Meanwhile, the UK government also asked financial enforcement agencies to investigate possible ties between HSBC and Standard Chartered and the Guptas, over concern about their exposure to potentially illicit funds. South African raised Lord Peter Hain wrote a letter to the British treasury providing details of individuals who should be investigated for “industrial scale” money laundering. The names include prominent members of the Zuma family – including president Jacob Zuma and presidential hopeful Nkosazana Dlamini-Zuma. Chancellor Philip Hammond responded saying he would pass on the former Labour cabinet minister's concerns about UK banks being handled illicit funds linked to the notorious family through Hong Kong and Dubai.
Hammond said he had contacted the UK's Financial Conduct Authority, the Serious Fraud Office and the National Crime Agency, and that claims of corruption were taken “extremely seriously”. The FCA said it was “already in contact with both banks named and will consider carefully further responses received.” A source from HSBC said it was unclear if the Guptas had ever been among the bank's clients. Standard Chartered said it could not comment on the details of client transactions, but “confirm that after an internal investigation, accounts were closed by us by early 2014.”
News of these international probes are expected to increase pressure on Zuma, weeks before his ruling African National Congress is due to vote on his successor as party leader. The party has been split over allegations against Zuma and his friends, the influential Guptas. They are accused of using their connections to direct ministerial appointments and win lucrative state contracts for the family's business.
South African civil society groups and opposition parties have expressed frustration that police and prosecutors in the country have not pursued an investigation into the Guptas. The president controls key police and prosecutor appointments. The US investigation is said to draw on information from emails that were leaked from a Gupta company server this year and led to media revelations about the family’s alleged dealings with government ministers and executives at state-owned companies.
