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Why Zuma Feels Indebted To The Guptas

Embattled South African President Jacob Zuma says the Guptas helped his son Duduzane when he was struggling to start his career

President Jacob Zuma has said that when Duduzane Zuma was battling to find an internship in the IT sector, the Guptas came to his rescue and offered him a job, the Sowetan reports

This was in response to a demand from Eastern Cape Alliance leaders for Zuma to explain his relationship with the controversial Gupta family. The president explained that his son was not given any other opportunities because of his last name.

Zuma’s relationship with the Gupta family has come under serious scrutiny in recent years. This scrutiny has intensified since a Gupta-owned jet was allowed to  land at Pretoria’s Waterkloof Air Force Base in 2013. It was carrying over 200 guests set to attend a Gupta wedding at Sun City. The debacle was dubbed Guptagate and the presidency took pains to deny that Zuma had any knowledge of the affair.

More recently, the Gupta family has been accused of hand-picking candidates for various ministerial positions. The Sunday Times reported on Sunday that the family had contacted Deputy Finance Minister Mcebisi Jonas to offer him axed Finance Minister Nhlanhla Nene’s position.

Duduzane Zuma’s relationship with the Gupta’s now puts him in a position to benefit financially from deals and acquisitions made by the family .

Duduzane received shares in Gupta-owned Tegeta Exploration and Resources just three weeks before the company acquired Glencore’s Optimum coal mine. The mine will now supply coal to three power plants: the Hendrina power plant, which requires 5,5 million tons of coal a year at a cost of R150 a ton, as well as the Komati and Majuba power stations.

Duduzane is said to own between 29% and 30% of the shares in Tegeta through his 45% ownership of Mabengela Investments. Mabengela Investments holds around 65% of Tegeta, while Gupta brothers Atul and Rajesh hold around 20% and 14% respectively. Their wives reportedly hold around 3% and 14%, according to Mail & Guardian calculations.

Duduzane could also benefit from the nuclear build programme through shares held in Shiva Uranium, a company owned by the Gupta’s listed holding company Oakbay Resources and Energy.

source: Destinyconnect


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