South African Tender Bust Bolsters Ramaphosa’s Anti-Graft Fight

South African Tender Bust Bolsters Ramaphosa’s Anti-Graft Fight

JOHANNESBURGH (Capital Markets in Africa) – South Africa’s Hawks special investigative unit detained seven people on Wednesday in the first major arrests following revelations that a services company, Bosasa, looted billions of rand from the state by bribing officials. The arrests follow an investigation that found almost 1.6 billion rand ($119 million) may have been misappropriated when the Department of Correctional Services awarded prison tenders to Bosasa or its units, the Directorate for Priority Crime Investigation said…

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JPMorgan Asks U.K. Court to Toss $875 Million Nigerian Lawsuit

JPMorgan Asks U.K. Court to Toss $875 Million Nigerian Lawsuit

LAGOS (Capital Markets in Africa) – JPMorgan Chase & Co. asked a London court to dismiss a lawsuit brought by the Nigerian government that accuses the bank of failing to prevent $875 million in corrupt payments. The lender said it got the correct approvals from Nigerian officials before transferring the funds to accounts controlled by a former oil minister who’s been convicted of money laundering, and that the government’s claim has no real prospect of success. After…

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Angola Gets $500 Million From HSBC Account Frozen Due to Fraud

Angola Gets $500 Million From HSBC Account Frozen Due to Fraud

LUANDA (Capital Markets in Africa) – Angola has recouped $500 million that was frozen in an HSBC Holdings Plc account in London linked to an alleged fraud, the Finance Ministry said. The funds were part of $1.5 billion that the Angolan government was to pay Mais Financial Services, a company managed by a person close to Jose Filomeno dos Santos, the son of Angola’s former president, for the start-up of a $35 billion strategic investment…

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SAP Paid $11 Million to Gupta-Linked Companies for Contracts

SAP Paid $11 Million to Gupta-Linked Companies for Contracts

JOHANNESBURG (Capital Markets in Africa) – SAP SE said it paid 128.6 million rand ($11 million) to companies linked to South Africa’s Gupta family, which is headed by three brothers accused of using their friendship with former President Jacob Zuma to defraud state-owned entities. The findings represent the first time that an international company has given details on specific payments made to Gupta entities. Other global businesses to become embroiled in the corruption allegations include U.S. consultancy McKinsey…

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HSBC Closes Accounts Linked to South Africa’s Guptas Amid Review

HSBC Closes Accounts Linked to South Africa’s Guptas Amid Review

JOHANNESBURG (Capital Markets in Africa) – HSBC Holdings Plc is shuttering accounts associated with the powerful Gupta family as it assesses its exposure to the scandal gripping South Africa. The bank is conducting a wide-ranging review of any possible involvement in suspicious transactions, with the assistance of external investigators, people with knowledge of the matter said. HSBC first closed accounts held by companies linked to the Gupta family in 2014 after internal compliance procedures picked up…

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Guptas Accuse Regulator of Urging Banks to Shut Their Accounts

Guptas Accuse Regulator of Urging Banks to Shut Their Accounts

JOHANNESBURG (Capital Markets in Africa) – A group of companies linked to South Africa’s politically connected Gupta family said the country’s banking regulator encouraged lenders to shut their accounts, broadening a battle to retain the last of their banking services. The 20 businesses, which are suing Bank of Baroda’s local unit to keep their accounts open, have now included Reserve Bank Governor Lesetja Kganyagoand the Registrar of Banks Kuben Naidoo, whose office sits in the central…

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Credit Suisse Among Banks Probed on Mozambique, WSJ Reports

Credit Suisse Among Banks Probed on Mozambique, WSJ Reports

MAPUTO (Capital Markets in Africa) – U.S. authorities are investigating Credit Suisse Group AG, BNP Paribas SA and VTB Group for their roles in selling about $2 billion of bonds for Mozambique, the Wall Street Journal reported, citing unidentified people familiar with the matter. The Federal Bureau of Investigation is examining whether the banks facilitated corruption by enabling officials from the African nation to take money raised in the debt sales, the newspaper reported. The Justice Department…

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