Cue gp 8
The Right Honourable Lord Hain of Neath
House of Lords, London SW1A OPW
Email: peterhain@parliament.uk Tel: 020 7219 3000
Right Honourable Philip Hammond MP 25 September 2017
Chancellor of the Exchequer
HM Treasury
1 Horse Guards Road
SW1A 2HQ.
Dear Philip
Financial crimes allegedly committed in South Africa, UAE and Hong 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. In
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 financial institutions. For
example, investigative journalists have broken this _—_story
http://amabhungane.co.za/article/2017-06-29-guptaleaks-the-dubai-
laundromat, which details how several Standard Chartered US dollaraccounts 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 UK-based Bell Pottinger which went into
administration as a result, and KPMG which has sacked its South African
leadership but stil 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, | 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, two 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 | have talked to
cannot see how they will not have been exposed to this network.
| 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):
Individuals:
GUPTA, RAJESH KUMAR, (ZA identity number:
* GUPTA, ATUL KUMAR, (ZA identity number:
GUPTA, AJAY KUMAR, (ZA identity number:
* GUPTA, ARTI, (ZA identity number
GUPTA, PUNEET (Passport no:
GUPTA, CHETALI, (ZA
=m)
GUPTA, VARUN, (ZA ID No: Sm
GUPTA, DEEPAK KUMAR, (ZA ID:
GUPTA, SHUBHANGI (ID unknown)
2
(orGUPTA, ANIL KUMAR (ZA ID N
GUPTA, Shivani (ID unknown)
ESSA, Salim (key Gupta associate and known to have set up a
number of their shell companies) - (ZA ID Noa)
SINGH, Anoj (ZA ID No: ===)
MOLEFE, Brian (ZA [D No: ===)
SHARMA, Iqbal (ZA |D: ===)
WOOD, Eric (ZA ID: &
ZUMA Jacob Gedleyihlekisa (ZA ID: =e)
ZUMA Duduzane (ZA ID: — President Zuma's son)
Zuma Duduzile (or Zuma-Sambdula) (ZA |: == -
daughter of President Zuma, sister of Duduzane Zuma)
+ ZUMA Edward Muziwoxolo (ZA ID: === — President
Zuma's son)
* ZUMA Mxolisi (ZA |D: === — President Zuma’s son)
* ZUMA Khulubuse Clive (ZA ID: — President
Zuma's nephew)
+ DLAMINI-ZUMA Nkosana Clarice (ZA 1D: === —
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 |D: ===)
ZUMA Truman Michael Zakhe (ZA ID: ===)
ESSE)
Entities (the below are entities linked to the Guptas suspected to have been
set up for the purposes of transnationally laundering their illicit proceeds:
‘* Regiments Asia Limited (CR 2111264)
Tequesta Group (CR 2111262)
Morningstar (CR 2196203)
VR Laser Asia Ltd (CR 2111273)
Trillian
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 | am
writing in parallel because | believe Banks coming under European Union
jurisdiction will certainly be involved in this money laundering as well.
| 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. | 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?
| stand ready to meet with you and with Treasury officials should you so
desire ;
Yours sincerely
(th ew