The Right Honourable Lord Hain of Neath
House of Lords, London
Right Honourable Philip Hammond MP
Chancellor of the Exchequer
1 Horse Guards Road
25 September 2017
Financial crimes allegedly committed in South Africa. UAE and Honq Kong through UK headquartered financial institutions
Having recently visited South Africa, it is clear the country is gripped by a political, economic and social crisis, precipitated by a vast criminal network facilitated by an Indian-South African family, the Guptas (see identifier details below) and the Presidential family, the Zumas.
Such is the extent of this criminal network that the South African state is indisputably regarded as having been "captured", with corruption and cronyism plundering taxpayer resources on an industrial scale.
As a consequence, economic growth has plummeted, international investor confidence is rock bottom and state institutions have been hollowed out in this great country, totally betraying Nelson Mandela's legacy and the values for which so many of us fought in the anti-apartheid struggle.
However it became clear to me during my visit that this Gupta/Zuma criminal network is not localised to South Africa — indeed it has been enabled by a transnational money-laundering network that these individuals have established, including bank accounts at global financlal institutions. For example, investigative journalists have broken this story, which details how several Standard Chartered US dollar accounts in Dubai were used by the Gupta network to launder the proceeds of their illicit gains from the South African state.
Furthermore, several multinational companies including McKinsey, SAP and KPMG have recently been implicated in facilitating the Gupta's financial crime activity. All three of these are facing multiple investigations. This follows a similar scandal involving IJK-based Bell Pottinger which went into administration as a result, and KPMG which has sacked its South African leadership but still faces many questions. The reach of the Guptas has not left Western countries untouched. In July, news broke of how over US$1-million paid by Swiss crane manufacturer Liebherr ultimately ended up in a US company, Brookfield Consulting, owned by US-citizen relatives of the Guptas.
These financial crimes committed by the Guptas are Widely documented and revelations continue to break as a result of relentless work by South Africa's remaining independent state institutions, investigative journalists, whistleblowers, civil society and the academic community. The country's prosecuting authorities have yet to take action because they are widely regarded as having been compromised by the Guptas.
Having looked into this and talked with experts, and noting the reported views of the highly respected former South African Finance Minister Pravin Gordhan, I have deep concerns and questions around the complicity, whether witting or unwitting, of UK global financial institutions in the Gupta/Zuma transnational criminal network.
Based on my knowledge, the majority of the illicit funds have flowed through the UAE and Hong Kong. In both these jurisdictions, Ngo of the UK's largest financial institutions — Standard Chartered and HSBC — have their biggest footprints. It will be no secret to financial crime experts that criminals target large and credible financial institutions for the same reasons that legitimate multi-national networks do — for their global reach. Experts I have talked to cannot see how they will not have been exposed to this network.
I am therefore asking you to ensure UK law enforcement and regulatory authorities investigate this and also request all UK financial institutions to review their exposure for the following individuals and entities (though not limited to these):
GUPTA, RAJESH KUMAR, (ZA identity number.
GUPTA, A TUL KUMAR, (ZA identity number:
GUPTA, AJAY KUMAR, (ZA identity number:
GUPTA, ART l, (ZA identity number:
GUPTA, PUNEET (Passport no:
GUPTA, CHETALI, (ZA ID No: GUPTA, VARUN, (ZA ID No.
GUPTA, DEEPAK KUMAR, (ZA ID:
GUPTA, SHUBHANGI (ID unknown)
GUPTA, ANIL KUMAR (ZA ID No
GUPTA, Shivani (ID unknown)
ESSA, Salim (key Gupta associate and known to have set up a number of their shell companies) — (ZA ID No
SINGH, Anoj (ZA ID No.
MOLEFE, Brian (ZA ID No.
SHARMA, Iqbal (ZA ID:
WOOD, Eric (ZA ID:
ZUMA Jacob Gedleyihlekisa (ZA ID:
ZUMA Duduzane (ZA President Zuma's son)
Zuma Duduzile (or Zuma-Sambdula) (ZA ID daughter of President Zuma, sister of Duduzane Zuma)
ZUMA Edward Muziwoxolo (ZA ID : - President Zuma's son)
ZUMA Mxolisi (ZA ID: — President Zuma's son)
ZUMA Khulubuse Clive (ZA ID. Zuma's nephew)
DLAMINI-ZUMA Nkosana Clarice (ZA ID: President Zuma's ex-wife & prominent politician)
NGEMA-ZUMA Gloria Bongekile (ZA ID: President Zuma's wife; also known as Bongi, previously also used Malerato)
MADIBA-ZUMA Thobeka Stacie — (President Zuma wife, ID unknown)
ZUMA Sikhumbuzo (ZA ID.
ZUMA Truman Michael Zakhe (ZA ID:
Entities (the below are entities linked to the Guotas suspected to have been set up for the purposes of transnationallv laundering their illicit proceeds:
Regiments Asia Limited (CR 2111264)
Tequesta Group (CR 2111262)
Morningstar (CR 2196203)
VR Laser Asia Ltd (CR 2111273)
BURLINGTON STRATEGY ADVISORS
Global Corporation LLC (Dubai)
Accurate Investments Limited (RAK)
Gateway Limited (RAK)
Fidelity Enterprises Limited (JAFZA)
Regent Enterprises Limited
Reliable Adam Enterprises Limited
Venus Limited (RAK)
Can you also please get in touch immediately with the authorities responsible for proper financial regulation in Dubai and Hong Kong to make enquiries?
And similarly with the President of the European Commission to whom I am writing in parallel because I believe Banks coming under European Union jurisdiction will certainly be involved in this money laundering as well.
I ask that these investigations proceed forthwith and would be grateful if you could keep me regularly updated on your decisions and actions in regard to each of the above individuals and entities, I assume you will be in touch with the CEOs Of HSBC and Standard Chartered, though it may well be that other UK based financial institutions are also involved.
Could you please immediately refer this letter to the Serious Fraud Office for investigation and the Financial Conduct Authority too?
I stand ready to meet with you and with Treasury officials should you so desire.
Signed Peter Hain
25 September 2017