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Bank of China closes accounts of Gupta-linked firm

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NewsHubSteel maker VR Laser said in papers filed in the North Gauteng High Court in January that the Bank of China demanded that it ditch the Guptas as shareholders shortly before closing its accounts just three weeks after they were opened because of perceived political risk.
The bank is the third-largest in China and is 64% owned by the Chinese government’s sovereign wealth fund.
VR Laser, which supplies steel products to arms maker Denel, approached the Bank of China after Nedbank and Standard Bank closed its accounts last year citing reputational risk.
In letters to VR Laser, Nedbank said it could no longer do business with the firm because its Gupta shareholding posed « significant reputational risk ».
Asked on Thursday what impact the account closures had on his firm and which financial institution was processing his payments, VR Laser CEO Pieter van der Merwe said he would not comment while litigation was pending.
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