Evidence Exposes Gupta Kickback Racket and Elaborate Money Laundering Scheme

A year-long investigation by amaBhungane has yielded significant evidence indicating the involvement of the Gupta family in a money laundering operation, estimated in the millions. The racket was primarily targeted at companies looking at sealing business transactions with Transnet, South Africa's state-owned transport operator.

A letterbox company, ‘Homix’, involved in secreting away hundreds of millions, was identified as part of the investigation. Homix has been linked to the Guptas through its self-proclaimed Chief Executive who previously managed a Gupta-owned company. The money trail was observed flowing to a Hong Kong firm that also shared an address with a company owned by a Gupta associate.

High Court papers filed recently in Johannesburg contained the pivotal proof of Gupta involvement. The transactions unravelled as follows: after exposure of Homix, about 10% of the first year’s payment on another significant Transnet contract moved to Gupta-owned TNA Media. The total sum of R17.1 million was alleged to be laundered through two companies before settling at TNA, which runs The New Age.

The Guptas, however, did not respond to any queries and Transnet denied any wrongdoing. The heart of the argument surrounding the concept of "state capture" finds reinforcement in these revelations, suggesting the Guptas' orchestrated these kickbacks by using their political influence and financial muscle to arm-twist companies doing business with the state.