Bank closes accounts held by Gupta firm

First National Bank has closed the accounts of Oakbay Investments, prompting the Gupta-linked firm to look elsewhere.

Johannesburg - A South African company owned by the Guptas said on Wednesday that First National Bank has closed its accounts, the latest local company to shun the family due to a scandal over its relationship with President. Jacob Zuma.

Read: Corporate SA turns its back on the Guptas

Read: KPMG cuts ties with the Guptas

“Oakbay has received no reason whatsoever justifying FNB's actions. We are already in the process of moving our accounts to a more enlightened institution,” Oakbay Investments said in a statement.

FNB is a unit of FirstRand.

Three other South African companies, including KPMG and Barclays Africa, have severed ties with the firm owned by the Guptas, a family of Indian-born businessmen.

The Gupta family business has been at the centre of allegations of state capture of late. There is also an alleged connection between the family and their business ventures and the current crisis in government.

REUTERS