SARB confirm Bank of Baroda are withdrawing from South Africa, after confirming their intentions to depart with the SA Reserve Bank.
The bank have become a recognisable name in this country following the state capture movements of the Gupta brothers. They had registered more than 20 accounts with the institution, but Baroda went on to take a stand against their corruption.
Deals with the devils…
The Guptas lost an interdict seeking to compel the Bank of Baroda to keep allowing the family or their companies to bank with them. The bank then said that it would close the accounts of 20 Gupta-affiliated companies, including two coal mines, by the end of September 2017.
Then, the billionaires were eventually given a reprieve by Judge Tati Makgoka in the Pretoria High Court. The bank were interdicted, and ordered to keep their clients’ accounts open.
However, as clarified in a statement by SARB, Bank of Baroda are now shutting up shop in Mzansi. They reassured all current clients that no depositor will be left disadvantaged, and that discussions are still ongoing between the two parties
“The Bank of Baroda has notified the Office of the Registrar of Banks of its exit from South Africa. The Registrar, which is part of the South African Reserve Bank (SARB), is in discussions with the Bank of Baroda to ensure its orderly withdrawal from South Africa so that no depositor is disadvantaged. At this stage, the SARB has no further comments on the matter.”
How did the Guptas use Bank of Baroda?
The Guptas had previously exploited Baroda and their lending systems to finance corrupt activity. According to the #GuptaLeaks trove of emails, they secured a bond of R3.84-million from the bank to buy Jacob Zuma’s fourth wife a luxury house in Pretoria.
It now seems Baroda are ready to cut ties with both the Guptas and South Africa completely, in a bid to clean up a reputation soiled by the aforementioned clients.