Report: VBS joins other banks, cuts business deals with Gupta family
According to the City Press, the Venda Building Society Mutual Bank is the latest to decline to do business with the Guptas.
JOHANNESBURG – A fifth South African bank has reportedly closed the accounts of the controversial Gupta family.
According to the _City Press_, the Venda Building Society Mutual Bank is the latest to decline to do business with the Guptas.
VBS is the same bank that granted President Jacob Zuma a loan of R7.8 million so that he could repay the state for his portion of the bill for security upgrades to his Nkandla home, as ordered by former Public Protector Thuli Madonsela.
Two business accounts were terminated in January following talks by the bank's bosses, according to the report.
It's understood the bank sent a letter to Oakbay Investments which read: "Please be advised that VBS Mutual Bank, in line with our risk appetite framework, has declined your request for new accounts applied for and [your] continued relationship with the bank.”
It further added that Guptas’ accounts would remain open until May 22 after which their existing accounts would be deactivated.
The bank has apparently declined to add any more details, due to a "bank-client confidentiality clause".
The country’s big four financial institutions also cut ties with the family’s companies about a year ago, citing reputational risk.