Skip to content
Search

Latest Stories

UK lawmaker blames HSBC, Stanchart, Baroda in South Africa corruption

CORRUPTION under South Africa's former president Jacob Zuma was enabled by international banks, companies and governments which should now seek to recover the loot they helped to launder, British lawmaker Peter Hain told an inquiry on Monday (18).

HSBC, Standard Chartered and India's Bank of Baroda, as well as their senior directors, were "directly culpable" in the looting of South Africa's treasury under Zuma, Hain said in his submission to the Judicial Commission of Inquiry into Allegations of State Capture.


Hain was invited to give evidence because he had already named several corporates he was investigating under parliamentary privilege in 2017 as complicit in state capture.

HSBC said it fully supported the commission's inquiry. Standard Chartered and Bank of Baroda did not immediately respond to a request for comment.

"They're all up to their neck in this," he told the inquiry at his appearance.

"They continued because of course the corporates concerned, including the banks, were making money out of it...The Guptas could not have amassed this illicit wealth without the corporates and the banks ... being their little helpers."

Zuma, who was removed as president last year over corruption allegations, is facing a judicial inquiry. He has agreed to cooperate but has dismissed the probe as prejudiced.

Part of its brief is to investigate accusations that the Guptas - prominent businessmen brothers Atul, Ajay and Rajesh- influenced Zuma over political appointments and state contracts.

Hain, a labour lord and former anti-Apartheid activist, called on the banks, global corporates and foreign governments to cooperate better so all those involved are brought to justice.

In his submission he said a number of international banks helped the Guptas cloak the source of their funds - by allowing them to open and maintain bank accounts, even after allegations of their involvement in corruption became public, and also by allowing them to transfer illicit funds into these accounts.

"The warning signs were there and they did very little about it," he said of the banks, adding that when he had tried to question the banks after he had named them in parliament as complicity he "found a great reluctance, citing ... client confidentiality, which is the excuse they hide behind.... The international banks, HSBC, Standard Chartered and Bank of Baroda are hiding behind this principle to conceal their complicity."

The role of global finance in facilitating corruption, fraud and money laundering has come under increasing scrutiny over the past decade, but the fight against financial crime is mostly dealt with by national authorities who often fail to cooperate effectively.

Among his recommendations are to improve transparency around the beneficial owners of companies. He also proposes better programmes for auditing the due diligence conducted by banks to ensure that they are complying with anti-money laundering laws, and stiffer penalties for individuals and organisations that fail to do so.

An HSBC spokeswoman said the bank will continue to investigate any potential links to the Guptas or Gupta-related individuals and companies should new information come to light.

"This is no easy task given the lengths to which the Guptas have gone to disguise their activity," she said.

The Guptas also deny the accusations and say they have been victims of a political attack. They have since closed their South African operations in mining, media and technology.

Hain's report said that they currently reside in Dubai, and call on the Dubai authorities to extradite them to South Africa to face questioning over the allegations.

(Reuters)

More For You

single-use vapes-iStock

Analysis by Material Focus estimates that 8.2 million vapes are discarded or littered each week in the UK—equivalent to 13 every second. (Representational image: iStock)

iStock

Shops told to clear single-use vapes before ban starts on June 1

SHOPS across the UK have until 1 June 2025 to sell off remaining stocks of single-use vapes before a nationwide ban comes into force.

The legislation, confirmed last year, follows a government consultation that showed strong support for restricting their sale and supply.

Keep ReadingShow less
Primark-London-Getty

During his 15-year tenure, Marchant expanded Primark’s store network to more than 450 locations across 17 countries in Europe and the United States. (Photo: Reuters)

Primark chief Paul Marchant steps down after misconduct probe

PAUL MARCHANT, the head of fashion retailer Primark, has resigned with immediate effect after admitting to an "error of judgment" in his behaviour towards a woman in a social setting.

Associated British Foods (AB Foods), Primark's parent company, announced his resignation on Monday.

Keep ReadingShow less
Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

JAGUAR’S ambition to seduce younger, richer drivers was on full display in Paris with a presentation of its newest prototype, the Type 00, which promises all-electric luxury... at a steep price.

The low-slung, muscular-looking concept car presented to European reporters last Friday (21) prefigures a production model expected mid-2026 at a base cost of €150,000 (£123,472.8).

Keep ReadingShow less
Starmer-Trump-Getty

Trump has suggested the possibility of a 'great' trade deal that could help the UK mitigate the impact of tariffs he has pledged to introduce. (Photo: Getty Images)

Starmer, Trump talk trade deal progress in 'productive' discussion

KEIR STARMER and Donald Trump spoke on Sunday about ongoing UK-US trade negotiations, with Downing Street describing the talks as "productive."

Since leaving the European Union, the UK has been working to secure a trade agreement with the United States. Successive British governments have pursued a deal, but it has remained elusive.

Keep ReadingShow less
modi-trump-getty
Trump shakes hands with Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)

India-US trade talks end with no sign of tariff relief

INDIA and the United States have agreed to move forward on finalising a part of their bilateral trade deal this year, but there was no indication of any tariff relief for India.

Trade discussions took place in New Delhi ahead of the implementation of US president Donald Trump's new trade tariff regime, which includes import levies on India, set to take effect from 2 April.

Keep ReadingShow less