UAE considers extraditing graft-accused Gupta brothers to South Africa

JOHANNESBURG • The United Arab Emirates (UAE) is weighing extraditing two members of the Gupta family who are wanted in South Africa, where they stand accused of looting billions of dollars from the state.

Rajesh and Atul Gupta were detained by UAE law enforcement authorities and discussions are taking place on the way forward, South Africa's Justice Ministry said in a statement on Monday.

Since the alleged crime was in South Africa, the authorities in the Gulf country are weighing extraditing the brothers, according to people familiar with the matter. No decision has been made yet, they said, declining to be identified.

A judicial inquiry into state corruption spanning over three years detailed close links between the brothers and former president Jacob Zuma, with numerous witnesses alleging that they worked hand-in-hand to siphon money from state transport, power and arms companies and jointly decided Cabinet appointments.

The government has said that at least 500 billion rand (S$44 billion) was stolen during Mr Zuma's nine-year rule. The Gupta brothers and Mr Zuma have always denied the allegations.

The arrests come a year after the UAE ratified an extradition treaty with South Africa.

The administration of South African President Cyril Ramaphosa had first asked the Emirati authorities to extradite members of the Gupta family in 2018, and the United States imposed restrictions ranging from visa bans to asset freezes on them the following year. Britain followed suit last year and Interpol placed the two brothers on its most-wanted list in February.

Corruption scandals involving the Guptas and people linked to them are blamed for damaging indebted state power utility Eskom Holdings and rail and ports company Transnet. McKinsey & Co has paid back money to both companies after working on contracts with Gupta-linked companies. The US-based consultancy has denied intentional wrongdoing.

It was in 2013 that the Guptas first came under scrutiny when it was found that the family had been allowed to use a secure military base to land a plane ferrying wedding guests, with a police escort, to a lavish event at Sun City, the casino resort about two hours west of Johannesburg.

In December 2015, the Guptas were accused of playing a part in Mr Zuma sacking then Finance Minister Nhlanhla Nene, and replacing him with little-known lawmaker Des Van Rooyen, a move that caused the rand to crash.

In 2016, public protector Thuli Madonsela was asked to probe the dealings between Mr Zuma, the Gupta family and state-owned entities. Her 355-page report, called State Of Capture, was damning. With Mr Zuma still clinging to power, a vast trove of e-mails and documents between the Guptas and their associates was leaked in 2017. By early 2018, the Guptas had fled South Africa.

South African authorities filed charges against the Guptas later in 2018 in connection with a questionable tender to undertake a feasibility survey on a dairy project in the central Free State province, in which a company they controlled was paid 21 million rand. That case is ongoing.

BLOOMBERG