Two brothers of the influential Gupta family – Rajesh Gupta and Atul Gupta – have been arrested in the UAE. Known for their close ties to former South African president Jacob Zuma, they have been accused of corruption and looting the nation
Two brothers from South Africa’s wealthy Gupta family – Rajesh Gupta and Atul Gupta – have been arrested in the United Arab Emirates (UAE).
The duo has been accused of corruption and profiting from their close ties with former South African president Jacob Zuma.
Rajesh and Atul Gupta fled South Africa after a judicial commission started investigating the graft charges levelled against them in 2018.
Now South Africa and UAE are holding extradition talks.
Who are the Gupta brothers?
Rajesh, aka, Tony (51), Ajay (56), and Atul (54) are the three Gupta brothers who migrated to South Africa from Uttar Pradesh’s Saharanpur district. The first to come was Atul in the year 1993. This was the time when the apartheid ended and Nelson Mandela was made the first democratically elected leader of the country.
Their father Shiv Kumar Gupta sent Atul to South Africa believing that Africa would go on to become the “America of the world”, a land filled with opportunities. He set up an import and distribution business selling computers and components. He was amazed at how easy it was to conduct business in South Africa compared to India, where red tape continues to be a hindrance.
Their business grew and the turnover of the company, Correct Marketing, was around Rs 97 million in 1997. That year, they changed the company’s name to Sahara Computers and Sahara Systems (Pvt) Ltd after their hometown Saharanpur.
Atul and Rajesh ran the business in South Africa and their families became citizens of the country. Ajay moved in 2003; until then he would be the one exploring business opportunities from India.
Over the years, their empire and their influence in the country grew. Apart from computers, they have business interests in mining, airlines, media, and technology.
In 2018, their parent company had an annual turnover of about 200 million rand (Rs 100.8 crore) and employed around 10,000 people, reports BBC. With four mansions, the Shara Estate in Johannesburg has four mansions and is valued at 52 million rand (Rs 26 crore).
What is their connection to Zuma?
The Guptas first met Zuma when he was the country’s vice president in 2003. Their relationship became stronger over the years and when Zuma became the president, one of his sons, Duduzane, was made a director of some companies owned by the brothers. He stepped down in 2016 following pressure from the public.
Bongi Ngema-Zuma, one of the president’s wives, used to work for the Gupta-controlled JIC Mining Services as a communications officer. The family reportedly paid for her 3.8 million rand Pretoria mansion, an allegation they have denied, according to a BBC report. Duduzile, Zuma’s daughter, was a director at Sahara Computers.
The two families became so close that a joined term was coined for them – the Zuptas.
The wedding ceremony of Veda Gupta, one of the daughters of the Gupta brothers, in Sun City, South Africa in May 2013. The money for the lavish celebration came by by looting a government-funded dairy farm meant to empower poor black farmers. AFP
The Guptas took all advantage of their connection to Jacob Zuma. In 2013, the family faced flak when a plane carrying guests for a wedding landed at a military airbase, reserved only for heads of state. The grand marriage ceremony of one of the daughters of the three brothers at Sun City resort in South Africa was paid for by looting a government-funded dairy farm meant to empower poor black farmers. The money was routed through the UAE.
What are the allegations against the Guptas?
The Gupta family has been accused of ‘state capturing’, using their power to influence the government’s decision-making to suit their interests. During Jacob Zuma’s rule, they intervened in the workings of the South African finance ministry, ministries of natural resources and public enterprise, and ministries responsible for tax collection.
Not only did the family influence who became ministers but they reportedly also fired those who did not toe the line. Former finance minister Pravin Gordhan was among those who were forced to quit. He later accused the family of being involved in “suspicious” transactions worth about $490 million which they deny, reports BBC.
Those who did not oppose them were rewarded with promotion and wealth.
The Gupta brothers influenced decisions taken by the state broadcaster, South African Airways, the state-owned rail freight operator, and the energy giant Eskom, one of the world’s largest utility companies. They hired models instead of TV journalists at ANN7 News, launched by the brothers to earn government revenue, and used a London-based PR firm, Bell Pottinger, to launch fake news websites which would cast them as victims of white monopoly and economic apartheid, reports News18.
The government awarded the family large contracts during Zuma’s presidency.
Employees and contractors of the Optimum Coal Mine in Hendrina, owned by the controversial Gupta family, protest in Hendrina, South Africa. AFP
How did the trouble start for the Gupta?
A four-year investigation by the country’s top judge concluded that the brothers were embedded in the highest levels of government and Zuma’s ruling African National Congress (ANC) party.
The then-deputy finance minister Mcebisi Jonas was offered the top job in the ministry along with a bribe of 600 million rand. He had reportedly denied the offering saying it made a “mockery of our hard-earned democracy”, reports The Quint.
Another ANC lawmaker Vytjie Mentor alleged that the brothers offered her a ministerial berth in exchange for a business deal at the Gupta mansion in the presence of Zuma.
In 2017, a mail leak showed how the family tried to control the politics in the country. A year later, Guptas fled South Africa following huge public protests that led to the removal of Zuma.
What happened next?
Last year, Zuma was imprisoned for 15 months for refusing to testify before investigators. He was released on parole after serving two months of his sentence in jail.
Reports published this year by investigators accused the brothers of being linked to racketeering activity through the procurement of rail, ports and pipeline infrastructure. Its authors also concluded that Zuma “would do anything that the Guptas wanted him to do for them”, reports BBC.
Interpol issued Red Notices – issued for enforcement agencies to look for fugitives who are wanted for prosecution – to the Gupta brothers.
After their arrest, a statement from Dubai Police said the two men were being held “in connection with money laundering and criminal charges in South Africa”.
With inputs from agencies
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