VBS Mutual Bank has declined to do business with the Gupta family, according to a report by the City Press.
VBS – the Venda Building Society – is the fifth local bank which has refused to deal with the family.
The report stated that VBS is the same bank which granted President Jacob Zuma a loan of R7.8 million which he used to pay for security upgrades to his home in Nkandla.
The City Press stated that two Gupta business accounts were closed in January by VBS, following discussions among the bank’s bosses.
A letter was then sent to Oakbay Investments, the Gupta family’s local holding company, stating that VBS was ending its relationship with it – in line with its risk appetite framework.
A source told the City Press that the Gupta family was not the bank’s top client, but they “would have had a lot of transactions”, which was “more work to track”.
In March 2016, the big four SA banks – FNB, ABSA, Standard Bank, and Nedbank – notified Oakbay they would no longer provide banking services to it or its subsidiaries.
Listing sponsor Sasfin Capital and auditing firm KPMG also cut ties with the company at the time.