Skip to content
Search AI Powered

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

Essar-Oil-UK-Getty

Essar Oil UK is advancing decarbonization at its Stanlow Refinery with two key projects supported by Industrial Energy Transformation Fund (IETF) grants. (Photo: Getty Images)

Essar, 24 other firms get £51.9m to cut industrial carbon emissions

THE GOVERNMENT has allocated £51.9 million to support 25 businesses in reducing carbon emissions as part of the Plan for Change aimed at driving economic growth and rebuilding Britain.

The funding covers projects across various industries, including food manufacturing, cement production, and glass processing.
Companies receiving funding include Essar Oil UK, Nestlé's coffee processing site in Staffordshire, Heinz's baked bean factory in Wigan, and Hanson Cement in North Wales.

Keep ReadingShow less
Tesla-Getty

Tesla has faced challenges in 2024, reporting its first annual decline in deliveries as incentives failed to increase demand for its ageing vehicle lineup. (Photo: Getty Images)

Tesla received nearly £200m in UK government grants since 2016: Report

ELON MUSK’s electric vehicle company Tesla has received £191 million in grants from the UK government since 2016, according to an analysis by Tussell.

The majority of the funding, £188m, was provided by the Department for Transport (DfT) through the plug-in car grant scheme, which aimed to promote the adoption of electric and plug-in hybrid vehicles, The Guardian reported.

Keep ReadingShow less
CES-2025

CES 2025, organised by the Consumer Technology Association (CTA), will be held from 7 to 10 January.

Indian tech innovations to shine at CES 2025, says top executive

THE INDIAN technology sector continues to capture attention, with several startups and entrepreneurs showcasing their innovations at CES 2025, the world's largest tech event.

John Kelley, vice president and show director of CES, described the Indian tech story as “fascinating” and highlighted its growing global significance.

Keep ReadingShow less
Anil Agarwal acquires London's historic Riverside Studios

Anil Agarwal

Anil Agarwal acquires London's historic Riverside Studios

THE founder and chairman of Vedanta group Anil Agarwal is the new owner of the iconic Riverside Studio in London, a statement said on Wednesday (8).

The 100-year-old studio, which is a renowned global centre for arts and located on the north bank of the river Thames in the centre of London, will now operate under the name ‘Anil Agarwal Riverside Studios Trust’, it informed.

Keep ReadingShow less
india-gdp-iStock

India's GDP growth was 9.7 per cent in 2021-22, 7 per cent in 2022-23, and 8.2 per cent in 2023-24. )Representational image: iStock)

India's GDP growth projected to fall to 6.4 per cent in FY25

INDIA's gross domestic product (GDP) growth is projected to decline to 6.4 per cent in the financial year 2024-25, marking its lowest rate in four years, according to government data released on Tuesday. The slowdown is attributed to weaker performance in the manufacturing and services sectors.

The growth rate of 6.4 per cent, estimated by the national statistics office (NSO), is the lowest since the contraction of 5.8 per cent recorded during the Covid-19 pandemic in 2020-21. GDP growth was 9.7 per cent in 2021-22, 7 per cent in 2022-23, and 8.2 per cent in 2023-24.

Keep ReadingShow less