Gupta family

Gupta
Current region South Africa
Place of origin Uttar Pradesh, India
Estate Sahara Estate, Saxonwold, Johannesburg

The Gupta family is an Indian-South African business family whose most notable members are the brothers Ajay, Atul and Rajesh "Tony" Gupta who migrated from the Indian state of Uttar Pradesh to South Africa in 1993. The Gupta family is best known for their close relationship with South African president Jacob Zuma.[1][2][3][4][5]

The family first arrived in South Africa in 1993, shortly before the country's first democratic elections, to setup and run Sahara Computers. The family is known to be based at the Sahara Estate in Saxonwold, Johannesburg, a compound comprising at least four mansions.[1]

Interests

The family owns a number of companies in a range of different industries ranging from energy to media publications.

Companies known to be owned or partially owned by the family include:

Relationship with Jacob Zuma

A reflection of the close relationship between the Gupta family and Jacob Zuma, particularly by both Zuma and the family's detractors, is the term "Zupta" to refer to this relationship. The portmanteau "Zupta," a combination of "Z" from "Zuma" and the "upta" from "Gupta," was first coined by the Economic Freedom Fighters at the 2016 South African presidential state of the nation address when they disrupted the event by repeatedly chanting "Zupta must fall" to express their dissatisfaction with this relationship.[8][9]

The Gupta's and, then vice-president, Zuma first met at a function hosted by the Guptas at Sahara Estate in 2003. Since then the family have been involved in a number of events involving Zuma and his family. The family is known to have been a supporter of Zuma during his power struggle for leadership of the African National Congress (ANC) with then president Thabo Mbeki in 2005.[7]

The family is known to have employed Zuma's wife Bongi Ngema-Zuma. One of Zuma's sons, Duduzane Zuma is a director in a number of Gupta owned firms and one of his daughters, Duduzile Zuma, was made a director of the Gupta owned Sahara computers shortly after Zuma's election to the presidency in 2008. She has since resigned from that position.[1] Zuma's close relationship with the family is a source of tension within Zuma's own party the ANC.[10] The Gupta's influence on the presidency has been described by the former General Secretary of the Congress of South African Trade Unions Zwelinzima Vavi as a "shadow government."[3]

Guptagate

In April 2013 a plane load of 217 guests from India were cleared to land at the South African Air Force base at Waterkloof for the marriage of Vega Gupta to Aakash Jahajgarhia. This event caused a significant controversy that led to the African National Congress (ANC) and other political parties as well as the South African National Defence Union to all denounced this use of the airforce base. The ANC issued a statement calling for "those responsible for giving the family permission to come into the country without going through the normal channels be "brought to book"".[1][11]

The landing was cleared by Bruce Koloane who was chief of state protocol at the department of international relations who insisted that the flight was a “sensitive” official visit. Koloane was demoted after an investigation concluded that he used Zuma's name to illegally authorise the landing. President Zuma was scheduled to attend the wedding but canceled after the incident became public.[12] The family apologised for the incident stating that they applied for special permission to land as a number of the guests were Indian government minsters and that it was promoting tourism to South Africa. The incident prompted a significant outcry that it was dubbed "Guptagate" by the South African media.[3]

Mining interests

In 2010 the Gupta owned firm, Imperial Crown Trading (ICT), along with Duduzane Zuma who was a part owner in ICT were involved in a dispute over the ownership of the Kumba iron ore mine, one of Africa's largest iron mines, with ArcelorMittal and Anglo American plc over the rightful ownership over the mine. The Department of Mineral Resources granted the ICT 21.4% ownership in the mine when ArcelorMittal did not renew their mining licence in time. The case was taken to the Constitutional Court where, in 2013, it was ruled that the Gupta/Zuma consortium could not claim rightful ownership. Had they won the case ArcelorMittal would have had to pay them R800 million (US$80 million).[3][13]

The family is alleged by the Rand Daily Mail to have worked closely with Zuma to secure interests in South Africa's nuclear energy sector.[7] In 2014 the South African government announced that a 9 600 MW nuclear procurement programme that entailed the construction of six to eight nuclear reactors at an estimated cost of between R800 billion to R1.6 trillion (US$50-billion to US$100 billion) was under consideration. This proposal was approved by the Zuma cabinet on the 9 December 2015. Zuma's controversial dismissal of then minister of finance Nhlanhla Nene on the 9 December 2015 is thought to have been partially motivated by Nene's department's resistance to the nuclear agreement.[7]

The Sunday Times alleges that a Gupta owned company has benefited from official connections in the awarding of a R4 billion contract to supply coal to the state electrical utility company Eskom.[14]

Media

On the 4th of February 2016 the Julius Malema of the Economic Freedom Fighters (EFF) announced that members of the press from Gupta owned media companies, ANN7 and The New Age, would no longer be welcome at future EFF media announcements. The EFF alleged that this was because of their role as being part of a "propaganda machinery" of a "corrupt cartel". He stated that the EFF "cannot guarantee the safety of those who are working in those studios and printing factories of the New Age and ANN7."[15][16] The EFF criticised the "New Age Breakfasts", a series of breakfast events organised by The New Age with and often paid for by government departments, as well as accused the paper of receiving preferential treatment in receiving advertising contracts from government.[17] A few days later the EFF released a list of 25 reasons why they are against the family, again accusing them of receiving preferential treatment in business dealings with government as well as government preference and collusion with Gupta owned media interests.[18]

The EFF's perceived threats towards ANN7 and New Age employees caused a number of other media commentators and publications to criticise Malema's remarks as threatening media independence and advocating violence towards the media and a particularly strong rebuke from the New Age and ANN7.[19][20] A gag order disallowing the EFF from banning The New Age and ANN7 from EFF media briefings was issued by the High Court following Malema's remarks.[21]

References

  1. 1 2 3 4 5 "Who are the Guptas?". BBC. 14 May 2013. Retrieved 7 February 2016.
  2. ↑ Munusamy, Ranjeni (1 February 2016). "Keeping Up With The Guptas: What’s behind the anti-Saxonwold revolt". Daily Maverick. Retrieved 9 February 2016.
  3. 1 2 3 4 Wild, Franz (17 December 2015). "Gupta family seen as symbol of Zuma’s failing rule". Sunday Times. Retrieved 9 February 2016.
  4. ↑ "Are the Guptas the new Shaiks?". Mail and Guaridan. 9 July 2010. Retrieved 11 February 2016.
  5. ↑ Craig Dodds, Candice Bailey and Loyiso Sidimba (7 May 2013). "Solving the ‘sordid Gupta saga’". IOL News. Retrieved 11 February 2016.
  6. ↑ Poplak, Richard (4 February 2016). "Trainspotter: Malema's new war game – #PayBackThe Money meets #GuptasMustGo". Daily Maverick. Retrieved 7 February 2016.
  7. 1 2 3 4 Gosam, Lily (3 February 2016). "Zuma, the Guptas and the Russians — the inside story". Rand Daily Mail. Retrieved 7 February 2016.
  8. ↑ "'Zupta must fall' - and EFF walks out". News24. 11 February 2016. Retrieved 14 February 2016.
  9. ↑ Hartley, Wyndham & Marrian, Natasha (11 February 2016). "Chaos as EFF once again delays speech and then stages walkout". Business Day. Retrieved 14 February 2016.
  10. ↑ "Zuma allies 'break ranks' with him over Guptas". Rand Daily Mail. 1 February 2016. Retrieved 9 February 2016.
  11. ↑ "Guptas use Waterkloof airforce base as private landing strip". eNCA. 30 April 2013. Retrieved 9 February 2016.
  12. ↑ Underhill, Glynnis (6 February 2016). "'Guptas? Never heard of them'". Mail and Guardian. Retrieved 9 February 2016.
  13. ↑ Brigid Taylor & Alec Hogg (12 December 2013). "“Huge relief” as Constitutional Court rules for Kumba, sends Gupta-owned ICT packing – victory for SA’s independent judiciary". Biznews. Retrieved 13 February 2016.
  14. ↑ Skiti, Sabelo (13 September 2015). "How Eskom bowed to Guptas". Sunday Times. Retrieved 9 February 2016.
  15. ↑ Yadhana Jadoo, Steven Tau and Travis Carlyle (5 February 2016). "Juju outburst reviled". The Citizen. Retrieved 9 February 2016.
  16. ↑ Quintal, Genevieve (4 February 2016). "Malema refuses 'crook' Zuma's offer, calls for Guptas to leave SA". Mail and Guardian. Retrieved 11 February 2016.
  17. ↑ "EFF slams Zuma and Gupta “criminal enterprises”". Business Tech. 8 February 2016. Retrieved 9 February 2016.
  18. ↑ Mbuyiseni Quintin Ndlozi (10 February 2016). "25 reasons why the Guptas must leave SA – EFF". Economic Freedom Fighters. Retrieved 11 February 2016.
  19. ↑ "The New Age, ANN7 editor slams Malema's 'utterances and threats'". News24. 4 February 2016. Retrieved 9 February 2016.
  20. ↑ "Editorial: Nothing justifies threats against journalists". Daily Maverick. 4 February 2016. Retrieved 9 February 2016.
  21. ↑ Zelda Venter (13 February 2016). "Why judge granted Gupta gag order". Pretoria News. Retrieved 13 February 2016.
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