Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

South African police raid Bank of Baroda in corruption investigation

Published 09/06/2018, 12:31
Updated 09/06/2018, 12:40
© Reuters. FILE PHOTO: The Bank of Baroda headquarters is pictured in Mumbai

© Reuters. FILE PHOTO: The Bank of Baroda headquarters is pictured in Mumbai

JOHANNESBURG (Reuters) - An elite South Africa police unit raided offices of India's Bank of Baroda (NS:BOB) on Friday and seized documents as part of an investigation into state corruption under former president Jacob Zuma, a police spokesman said.

Bank of Baroda, which is winding down its operations in South Africa, was thrust into the spotlight two years ago when it started working with the Guptas, a family of Indian-born businessmen who are at the centre of an influence-peddling scandal surrounding Zuma.

Zuma and the Guptas deny wrongdoing.

Police raided Bank of Baroda branches in Johannesburg and Durban and took documents showing bank transactions involving South African state firms, Hangwani Mulaudzi, a spokesman for the police's elite "Hawks" unit, said.

"We are of the view that Bank of Baroda was used as a conduit for the transfer of illicit funds. The raids are happening as part of 'state capture' investigations," Mulaudzi said, using a phrase coined to describe alleged influence-peddling under Zuma.

A Bank of Baroda employee in Durban who picked up the telephone confirmed the Hawks had visited the bank's premises on Friday.

"This search and seizure operation is not for investigation on Bank of Baroda. This requisition by the Hawks is in relation to the continuing ongoing investigation of the Gupta family," the bank said in a statement on Saturday.

The bank has been cooperating with investigating agencies and has shared relevant documents with them, it said.

An inquiry into allegations surrounding Zuma and the Guptas will begin formal public hearings in August and could take two years or more, officials have said.

Police earlier this year raided the compound of the Guptas in Johannesburg as part of an investigation into theft, fraud and money laundering at a state-backed dairy project in the Free State province that was meant to benefit the local community.

The whereabouts of the Gupta brothers is not publicly known. One of the brothers, Ajay Gupta, was declared a "fugitive from justice" after leaving South Africa for Dubai in February.

Gupta family representatives in South Africa could not be reached for comment.

© Reuters. FILE PHOTO: The Bank of Baroda headquarters is pictured in Mumbai

Zuma was in court on Friday for a separate hearing relating to a $2.5 billion arms deal from the 1990s. He faces 16 charges of fraud, racketeering, corruption and money laundering in that case.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.