The FBI has opened an investigation into U.S. links to South Africa’s Guptas, escalating a scandal over the family’s alleged use of a friendship with President Jacob Zuma to control state businesses.
Also Britain’s banking regulator, the Financial Conduct Authority (FCA), said it was in contact with two UK banks over any possible links to the family.
The former UK government minister and anti-apartheid campaigner, Peter Hain reported the allegations to the FCA, after he said he was given the information by South African whistleblowers.
But the Guptas and president Jacob Zuma have denied any wrongdoing. Gupta family spokesman, Gary Naidoo could not be reached for comment and the U.S. Embassy in Pretoria had no immediate comment.
The family, founders of a business empire spanning media, mining and consulting, have been named in a trove of leaked emails alleging graft in dealing with South Africa’s state-owned companies, which also named several global firms.
The Financial Times, which cited “people familiar with the matter”, said U.S. investigators had been looking at individuals, bank accounts and companies in the U.S. for ties to alleged graft involving the family. It gave no further details.
Britain’s FCA said it was in contact with HSBC and Standard Chartered banks following reports in British newspapers that the finance minister had asked regulators to investigate the lenders’ possible ties to the Gupta family and Zuma.
Standard Chartered in London said they were not able to comment on details of client transactions but added that “after an internal investigation, accounts were closed by us by early 2014”. HSBC said it had no comment on the matter.
The Guptas and their companies have not been charged with any crime in South Africa, but the scandal is one of many that have dogged the Zuma presidency.