State Capture Inquiry: Peter Hain details “UK involvement” in Gupta corruption

We knew Monday was going to be an explosive day at the State Capture Inquiry. However, Peter Hain has blown the lid off things in Johannesburg. The Labour MP and British politician explained how the Gupta network of patronage extends as far as London, and how their backdoor deals work in the UK.

UK banks “helped Guptas launder money”

Hain took to the stand to detail the international lengths state capture has gone to, so the palms of the rich and powerful can stay greased. He slammed two British banks – HSBC and Standard Chartered – for giving the Guptas ‘an open door’ to funnel illicit funds through:

“This is all through the international and financial banking system. There was increasing awareness of corruption and state capture and it being rife under the former President and yet these banks continued to work with these people.”

“The Gupta brothers used a number of international banks, like HSBC and Standard Chartered. They’ve granted them an open door to an international network through depositing money into local accounts. Laundering and robbery occurred assisted by Standard Chartered, but I assert HSBC are culpable too.”

Peter Hain

State Capture Inquiry: Who is Peter Hain?

Peter Hain lived in South Africa until he was 16. His parents were jailed for fighting the apartheid regime, and Hain followed in their footsteps. He led campaigns against the brutal South African government through the 70s and 80s, even surviving a letter-bomb which was posted to his address.

According to the witness, the scope of state capture needs to be much larger than just South Africa. He took another swipe at the UK, blasting their financial institutions for ‘giving lip service’ when combatting fraud.

“It’s not a South Africa bank question. It’s also a Dubai, Hong Kong and London, for that matter, question. A lot of governments, including the UK, give ‘a lot of lip service’ to anti-corruption and yet the Guptas have used the UK and South Africa to launder money on a prodigious scale.”

“Something has gone wrong in the international arena. Criminals are also exploiting the differing regulatory standards to locate their assets and launder their funds into these jurisdictions. It isn’t just a problem of the private sector, but one also of governments.”

Peter Hain

Guptas slammed once more at State Capture Inquiry

Peter Hain also reserved criticism for companies who were desperate to disguise “the source of funds” channelled by the Guptas. He rallied against Bain, KPMG and McKinsey – all companies implicated in state capture – but also claimed lawyers, accountants and estate agents in London are laundering illicit funds, too.

Hain alleges of Bain they were responsible for coaching the head-to-be, Tom Moyane, of the revenue services, they were coaching him on what he should do to, and several of these coaching sessions allegedly took place at Nkandla. "This was astonishing complicity and criminality."

— Erin Bates (@ermbates) November 18, 2019

The testimony continues on Monday.