Two members of the Gupta family have been arrested in the United Arab Emirates in the biggest ever step in the fight to capture leaders accused of looting state-run companies in South Africa.
On Monday, South Africa’s Ministry of Justice said that UAE law-enforcement officials detained Rajesh and Atul Gupta, and the way forward is being discussed.
The judicial investigation into state corruption that spanned more than three years found close links between the brothers and former President Jacob Zuma. Several witnesses alleged that they worked hand in hand to extort money from state transport, power and arms companies United, who was appointed to the cabinet. The government has said that at least 500 billion rands ($32 billion) were stolen during Zuma’s nine-year rule.
The Gupta brothers and Zuma have consistently denied the allegations.
The arrests come a year after the UAE ratified an extradition treaty with South Africa. President Cyril Ramaphosa’s administration previously asked Emirati officials to extradite members of the Gupta family in 2018. The US imposed restrictions on them the following year, from visa restrictions to asset freezes. Britain followed suit last year, and Interpol placed the two brothers on its most-wanted list in February.
The corruption scandals involving Gupta and his associates are blamed for causing damages to indebted state power utility Eskom Holdings SOC Ltd and rail and port company Transnet SOC Ltd. McKinsey & Company has returned the money to both companies after working on the contract with Gupta. Linked companies. The US-based consultancy has denied intentional wrongdoing.
South African authorities filed charges against Gupta in connection with a dubious tender in 2018 to conduct a feasibility survey on a dairy project in the central Free State province that paid Rand 21 million to a company controlled by him.
Ramaphosa won’t comment on the arrests, his spokesman Vincent Magwenya said by text message.
“We’ve always said that fighting corruption in SA requires resilience. If the rule of law is allowed to take its course, those implicated will eventually get their day in court,” said Stefanie Fick, executive head of accountability for the non-profit Organization Undoing Tax Abuse. “It seems like that day is around the corner for the Gupta kingpins.
In December 2015, Gupta was accused in Zuma of sacking then finance minister Nahlanhla Nene and replacing him with little-known MP Des van Rooyen, which caused the Rand to crash. Van Rooyen was removed four days later and was replaced by Pravin Gordhan, who had previously served in the position after protests from business, the public and members of the ruling African National Congress.
