Dlamini-Zuma link in UK probe of Guptas

Presidential hopeful Nkosazana Dlamini-Zuma's name has been mentioned in a pending investigation by UK authorities into alleged financial crimes committed by the Gupta and Zuma families. Besides the three Gupta brothers, President Jacob Zuma and some of their close family members, a British lawmaker has flagged Dlamini-Zuma as among 27 people UK financial institutions should review as possibly involved in criminal financial activities, notes a Daily Dispatch report. Yesterday, UK regulators confirmed they would look into concerns raised by Labour Party peer Lord Peter Hain that London-based banks might have handled illicit funds linked to the Gupta and Zuma families. The Financial Conduct Authority has begun a probe into whether HSBC and Standard Chartered facilitated money-laundering as a result of possible ties to the Gupta and Zuma families. In a letter, Hain asks for an investigation by UK law enforcement and regulatory authorities over the role of big businesses headquartered in the UK in money laundering by the Guptas. He raised concern about the banks’ possible exposure to the Guptas, alleging that money may have passed through to the United Arab Emirates and Hong Kong, where HSBC and Standard Chartered had large footprints. He also asked all UK financial institutions to ‘review their exposure to Gupta and Zuma family members and their business. Dlamini-Zuma is listed as one of these alongside Zuma’s two other wives – Bongi Ngema-Zuma and Thobeka Madiba-Zuma. Although Dlamini-Zuma is divorced from Zuma, they have four children together. Gupta associate, Eric Wood is also flagged by Hain, alongside former Eskom chief executive Brian Molefe. Others listed are Zuma’s children, including Duduzane and his twin sister Duduzile, Zuma’s brother Michael and nephew Khulubuse.

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Hain has enlisted the help of UK Chancellor of the Exchequer Phillip Hammond to track down about R7bn thought to have been laundered through the Guptas’ networks, and ensure it is returned to SA’s Treasury, says a BusinessLIVE report. Hain reportedly asked Hammond also to ensure that Bank of Baroda is investigated by British financial watchdogs along with HSBC and Standard Chartered. In his initial letter to Hammond, dated 25 September, Hain says it became clear to him that ‘this Gupta/Zuma criminal network is not localised to SA – indeed, it has been enabled by a transnational money-laundering network’. It is no secret, he says, ‘that criminals target large and credible financial institutions for the same reason that legitimate multinational networks do – for their global reach’, adding that the experts he has spoken to ‘cannot see how (the banks) will not have been exposed to this network’.

Full BusinessLIVE report

The twin moves in Britain and the US is seen as a game-changer, according to Business Day. It says once a person is on the radar of agencies such as the FBI and the UK’s Financial Conduct Authority, National Crime Agency and Serious Fraud Office, which all have huge resources, there is little chance of evading them. It points out the moves come after months of inaction by SA authorities to bring those implicated in allegations of state capture to book. Business Day says it understands that US and UK authorities have begun preparations to seize bank accounts and confiscate properties linked to the Guptas’ relatives living in those countries, and which are believed to have been bought with the alleged kickbacks. A Beeld report notes Hawks spokesperson Hangwani Mulaudzi promised co-operation with foreign authorities, but says they had not received any request for assistance as yet.

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Full Beeld report