Gupta-linked Oakbay must pay R293-million back by midnight tonight - Patel

Gupta-linked Oakbay must pay R293-million back by midnight tonight - Patel

- Minister Patel has demanded that Gupta-linked Oakbay repay the R293-million

- The money was loaned to Oakbay before they listed on the JSE

- Due to unlawful manipulations of its stock the IDC has demanded that the loan be repaid immediately

Gupta-linked Oakbay must pay R293-million back by midnight tonight - Patel

Gupta linked Oakbay have until Thursday 23 November midnight to pay back the loan. Photo source: Mining News

The Minister of Economic Development Ebrahim Patel has given a Gupta-linked company a deadline to pay back a loan to the Industrial Development Corporation (IDC) by midnight on Thursday.

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Briefly.co.za learned of this through fin24.com after Patel answered a parliamentary question. He said that Oakbay had been given an R293-million loan in 2014 before the company was listed on the JSE.

After the company was listed the loan was converted into stock. Due to media reports throughout the year, the IDC feels that certain persons and entities associated with Oakbay have engaged in unlawful manipulation of its share price.

Patel requested the IDC investigate the claims and recommend any solutions that may exist. The IDC appointed a legal team in June to investigate led by Advocate Geoff Budlender a respected member of the Cape Bar.

After the investigation concluded, the IDC has decided to cancel the agreement between itself and Oakbay. This was due to a number of misrepresentations and breaches of warranties and agreements by the Oakbay group.

The recommended solution was to recall the loan and interest which amounted to R293-million by Thursday the 23 of November 2017.

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If the money is not paid back then the IDC will institute legal action to recover the funds.

Oakbay did not reply to a request for comment.

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Source: Politics.briefly.co.za

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