SA Investing

Another 800 workers in a Gupta company potentially on the streets

A South African mining contractor owned by the Gupta family has been put into liquidation, according to people with knowledge of the matter.
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CAPE TOWN — Slowly, every room in the local Gupta corporate mansion is being boarded up and closed for business, the latest being Westdawn Investments, some R60 million in the dwang. The real tragedy of these closures is that while the set-up and preferred deals that kept them afloat are decidedly dodgy, the people working for them are often innocent victims. In this case about 800 workers stand to lose their jobs. And workers' rights are cynically used by Gupta-like owners to try and avoid/delay the inevitable winding up. While the dominant discourse is about how taxpayers rands that should have been used to uplift, empower and support the most disadvantaged in our society get diverted into the greedy maw of Zuptoid cronies and criminals, we often forget that honest, innocent people who were only too glad to secure jobs, find themselves back on the streets when corruption is exposed. If the Guptas and their local cronies are ever bought to book, perhaps a court can help them atone by ordering them to set up a support fund for the thousands whom they flattered to deceive. – Chris Bateman

By Loni Prinsloo

(Bloomberg) – A South African mining contractor owned by the Gupta family has been put into liquidation, according to people with knowledge of the matter.

Westdawn Investments, which does business as JIC Mining Services (Pty) Ltd., has debt of almost R60 million ($4.2 million), said the people, who asked not to be identified because the information isn't public. The company received a liquidation letter on Friday from a liquidator appointed by the High Court, they said. Kal Tire Mining, which JIC owes R900,000, brought the application, the people said.

About 800 people stand to lose their jobs and Chief Executive Officer Jagannath Arora will leave the country to return to India, said one of the people.

In 2017, JIC did work on the Maseve concentrator plant, which belonged to Platinum Group Metals Ltd. at the time. The producer of the precious metal paid for the services, but JIC's suppliers and debtors have not been reimbursed, the people said.

Ajay Gupta being interviewed by Stephen Grootes
Ajay Gupta being interviewed by Stephen Grootes

JIC's parent company, Oakbay Investments, is also setting up new offices and will trade as MJ Mining, said the people. Members of the Gupta family, who had close ties with former South African President Jacob Zuma, have resigned from management positions in the companies they control. That followed a wave of controversy surrounding allegations of improper influence over certain politicians and deals. The Guptas have denied wrongdoing.

The number for Westdawn's office didn't connect and the company hasn't responded to an email seeking comment. Oakbay's contact number was also out of service. The liquidator could not be reached for comment. Lawyers representing the Gupta family, didn't respond to emailed questions.

The Guptas became a household name in South Africa in 2013 after accusations that they'd exploited their political connections to land an aircraft bringing wedding guests from India at a high-security military base near the capital. The nation's anti-graft ombudsman found that they used their links to Zuma to secure contracts and deals from state companies including coal supply agreements with power utility Eskom Holdings SOC Ltd.

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