home Economics, Editorial Gupta Family Businesses Under Economic Terrorism

Gupta Family Businesses Under Economic Terrorism

By BO Editorial Collective

BO Officially recognizes the banks’ closure of Oakbay Resources and Energy (Oakbay) accounts and KPMG’s withdrawal as Oakbay’s audit firm as economic terrorism to sustain white power.

BO has been vindicated in its assertion that the economic sanctions against the Gupta family business, Oakbay, by the audit firm KPMG followed by closure of their accounts by ABSA and FNB was nothing but political acts aimed at destroying the Gupta business. This has been part of a strategy to hasten a coup against President Zuma as instructed by London based imperialism.

White capital has engineered the “Zuma Must Fall” movement in South Africa. The economic attacks on the Guptas has been part of the strategy of testing the possibilities of a coup and of building the confidence of the coup plotters. The current talk of armed struggle by the Economic Freedom Fighters (EFF) must be understood as part of the strategy of white capital to remove President Zuma and to replace him, preferably with Cyril Ramaphosa or another appropriate candidate who will take instructions from London. Zuma, as BO has been saying has looked East for the family feast and this has offended and angered white capital. The BRICS process is the main plunk of the look east policy. Evidence has now clearly shown that there is a global strategy to destroy the BRICS countries by buying corrupt opposition parties and civil society. The method of regime change to destroy the BRICS project was tested in Brazil where the president is facing a real possibility of being forced out of office against the wishes of the 54 million voters who voted her into power.

This week Oakbay appointed the black owned globally respected SizweNtsalubaGobodo as it’s auditors after it was illegally abandoned by the white owned KPMG.

According to the senior partner at SizweNtsalubaGobodo (SNG) Mr Victor Sekese, before accepting Oakbay as its client, his firm conducted a very thorough enquiry into the circumstances leading to the decision by KPMG to resign as auditors of Oakley. More specifically he pointed out the following:

“We did a pre-engagement exercise, as we are required to do in terms of the code of conduct of the International Federation of Accountants and the Independent Regulatory Board for Auditors … We did this exercise with rigour, and we were comforted with what we found.”

According to a KPMG email that was internally circulated in the firm there wasn’t any “audit reason” for KPMG resigning as Oakbay’s auditors. The writer of the email, KPMG Southern Africa CEO, Trevor Hoole had this to say:

“The recent media and political interest in the Gupta family, together with comments and questions from various stakeholders … has required us to evaluate the continued provision of our services to this group. We have decided we should terminate our relationship with the group immediately. In our view, the association risk is too great for us to continue.”

KPMG had apparently also indicated to Oakbay that there wasn’t any “audit reason” that caused them to resign and that its decision in this respect was based “on its assessed association risk”. Furthermore, SNG’s engagement with KPMG revealed that Oakbay had in fact not committed any professional or ethical misconduct that warranted their resignation as auditors.

It must be stated that audit firms are compelled by law to submit reports to the Independent Regulatory Board For Auditors (IRBA) regarding any identified irregularity concerning their clients. More specifically, the IRBA, which regulates the profession of auditing, requires full compliance (by all registered auditors) with Section 45(1) of the Auditing Profession Act, Act 26 of 2006 (Auditing Profession Act) which provides as follows:

“Section 45, Duty to report on irregularities:

An individual registered auditor … that is satisfied or has reason to believe that a reportable irregularity has taken place or is taking place in respect of that entity must, without delay, send a written report to the Regulatory Board.

The report must give particulars of the reportable irregularity referred to in subsection (1)(a) and must include such other information and particulars as the registered auditor considers appropriate.”

To this end a “reportable irregularity” is defined very specifically in Section 1 of the Auditing Profession Act as “any unlawful act or omission committed by any person responsible for the management of an entity, which – has caused or is likely to cause material financial loss to the entity or to any partner, member, shareholder, creditor or investor of the entity in respect of his, her or its dealings with the entity; or is fraudulent or amounts to theft; or represents a material breach of any fiduciary duty owed by such person to the entity or any partner, member, shareholder, creditor or investor of the entity under any law applying to the entity or the conduct or management thereof.”

SNG has indicated that on 21 April 2016, the IRBA confirmed that no irregularities regarding Oakbay have been lodged with it by KPMG.

Quite clearly SNG have done all that was necessary to establish whether KPMG had any genuine ground for their resignation as the auditors of Oakley and correctly found that, in the context of the circumstances surrounding their resignation as auditors, there was no compelling reason justifying such a resignation. To this end nothing was found to be wrong regarding the audit of the Oakley accounts. It is also very clear that before resigning KPMG did not, as is required by the International Standards on Auditing, “discuss with the appropriate level of management and those charged with governance their withdrawal from the engagement and the reasons for the withdrawal”.

Black Opinion has already revealed elsewhere the agenda and tactics of western imperialism to effect regime change in member states of BRICS via, inter alia, the main opposition parties in those states. In brief the strategy to effect regime-change outside of the electoral process involves three phases, namely: a deepening of the economic crisis; getting the masses out in protests on the streets, and; employing the parliamentary process to give legitimacy to their coup.

To this end we have witnessed thus far an escalation of the economic crisis so as to bully Zuma into firing Des Van Rooyen and hiring the “hand picked by imperialism” Pravin Gordhan as Minister of Finance.

We have also witnessed how, in furtherance of the “secondary aspect of the economic strategy”, KPMG has without any legitimate reason withdrawn as Oakbay’s audit firm and the major banks have applied economic sanctions against Oakbay.

BO applauds the courageous and much needed action by SNG to step in as the new audit firm for Oakbay which in turn effectively serves to rescue it’s JSE listing from being suspended.

Black First Land First National Convener, Andile Mngxitama, had this to say about the bold maneuver of SNG:

“When whites abandon you to the wolves of Johann Rupert, it’s blacks who help blacks. Dear blacks, we need a black bank urgently. Maybe with our Mavrodi’s we can establish a black rebel bank. Whites never loved us. Remember that always!”

The point is that KPMG, like the major banks that closed access for Oakbay to the banking system, acted without any basis and with impunity. BO has been saying all along, with all the necessary substantiation, that the economic sanctions against Oakbay by KPMG and the banks are unjustified and illegal – the facts speak for themselves.

What we have witnessed here is nothing but economic terrorism and the mainstream white captured media has been encouraging it. Is it not ironic that the foreign company called Lonmin, which instructed Cyril Ramaphosa to massacre black workers in Marikana, has not been subject to economic sanctions?

BO condemns, in the strongest terms, the economic terrorism against Oakbay and calls on banks to open their accounts immediately.


See the following links:

1. http://www.bdlive.co.za/business/financial/2016/04/22/sizwentsalubagobodo-explains-decision-to-take-on-oakbay-as-a-client

2. http://nzica.com/News/Archive/2012/September/Auditor-resignation.aspx?p=1

3. http://www.gov.za/sites/www.gov.za/files/a26-05_0.pdf

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