The Right Honourable Lord Hain of Neath
House of Lords, London SW1A OPW
Email: peter hain@parliamant.uk Tel: 020 7219 3925
PUBLIC VERSION (REDACTED)
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 @ 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-quptaleaks-the-dubai-laundromat which
details how several Standard Chartered US dollar accounts in Dubai were used by the
launder the pr f their ilicit gains from the South Afri
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
iPottinger 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, | 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:
(NB: ID numbers supplied to the Chancellor/President but redacted in this public version)
GUPTA, RAJESH KUMAR (ZA ID number **)
GUPTA, ATUL KUMAR (ZA ID number **)
GUPTA, AJAY KUMAR (ZA ID number **)
GUPTA, ARTI (ZA ID number **)
GUPTA, PUNEET (Passport no: **)
GUPTA, CHETALI (ZA ID number **)
GUPTA, VARUN (ZA ID number **)
GUPTA, DEEPAK KUMAR (ZA ID number ™*)
GUPTA, SHUBHANGI (ZA ID number **)
GUPTA, ANIL KUMAR (ZA ID number **)
GUPTA, Shivani (ZA ID number **)
ESSA, Salim (key Gupta associate and known to have set up a number of
their shell companies) (ZA ID number **)
SINGH, Anoj (ZA ID number **)
MOLEFE, Brian (ZA ID number *)
SHARMA, Iqbal (ZA ID number **)
WOOD, Eric (ZA 1D number **)
ZUMA Jacob Gedleyihlekisa (ZA ID number **)
2« ZUMA Duduzane (President Zuma’s son) (ZA ID number **)
Zuma Duduzile (or Zuma-Sambdula) (daughter of President Zuma, sister
of Duduzane Zuma) (ZA ID number **)
ZUMA Edward Muziwoxolo (President Zuma’s son) (ZA ID number **)
ZUMA Mxolisi (President Zuma’s son) (ZA ID number **)
ZUMA Khulubuse Clive (President Zuma’s nephew) (ZA ID number **)
DLAMINI-ZUMA Nkosana Clarice (President Zuma's ex-wife & prominent
politician) (ZA ID number **)
* NGEMA-ZUMA Gloria Bongekile (President Zuma’s wife; also known as
Bongi, previously also used Malerato) (ZA ID number *)
* MADIBA-ZUMA Thobeka Stacie — (President Zuma wife) (ZA ID number
*)
ZUMA Sikhumbuzo (ZA ID number **)
ZUMA Truman Michael Zakhe (ZA ID number **)
Entities (the below are entities linked to the Guptas suspected to have been set up for the
purposes of transnationally laundering their lit 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 Vox