US sanctions South Africa's Gupta family over 'widespread corruption'

US on Thursday anunced sanctions against South Africa's high-profile Indian-origin Gupta family for running a "significant corruption network" that leverd its political connections to eng in bribery, capture government contracts and misappropriate state assets.   

Among those specifically named in US Treasury Department's designation include Ajay Gupta, Atul Gupta, Rajesh Gupta, and ir associate Salim Essa for ir involvement in corruption in South Africa.

Gupta family has relocated to Dubai amid corruption charges against m in South Africa.

Ajay is family patriarch who formulated family's corrupt business strategies and controlled its finances, Atul is widely kwn to have overseen Gupta family's outreach to corrupt government official, and Rajesh cultivated important relationships with sons of powerful South African politicians and led efforts to pursue business and relationships in a South African province where corruption was rampant, Treasury said.   

Salim Essa, a business associate of Gupta family, has materially assisted, sponsored, or provided financial, material, techlogical support in corruption network, Treasury alleged.

sanctions anuncement demonstrates US government's unwavering commitment to supporting rule of law and accountability in South Africa, Treasury said.

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"We support anti-corruption efforts of South Africa's independent judiciary, law enforcement ncies, and ongoing judicial commissions of inquiry. Moreover, we commend extraordinary work by South Africa's civil society activists, investigative journalists, and whistleblowers, who have exposed breth and depth of Gupta family's corruption," it said. 

Treasury said its Office of Foreign Assets Control (OFAC) sanctioned members of a significant corruption network in South Africa that leverd overpayments on government contracts, bribery, and or corrupt acts to fund political contributions and influence government actions.  

"Specifically, OFAC designated Ajay Gupta, Atul Gupta, Rajesh Gupta, and Salim Essa for ir involvement in corruption in South Africa pursuant to Executive Order (E.O.) 13818, which builds upon and implements Global Magnitsky Human Rights Accountability Act," it said.

" Gupta family leverd its political connections to eng in widespre corruption and bribery, capture government contracts, and misappropriate state assets.  Treasury's designation targets Guptas' pay-to-play political patron, which was orchestrated at expense of South African people, said Sigal Mandelker, Treasury Under Secretary for Terrorism and Financial Intelligence.  

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" Guptas and Essa have used ir influence with prominent politicians and parties to line ir pockets with ill-gotten gains. We will continue to exclude from US financial system those who profit from corruption.

Ajay, Atul, and Rajesh Gupta immigrated to South Africa (from Uttar Presh) in 1990s, and due in large part to ir generous donations to a political party and ir reportedly close relationship with former South African President Jacob Zuma, ir business interests expanded.  

family has been implicated in several corrupt schemes in South Africa, allegedly stealing hundreds of millions of dollars through illegal deals with South African government, obfuscated by a showy network of shell companies and associates linked to family.  

Credible reports of se corruption schemes include Gupta family offering members of South African government money or elevated positions within government, in return for ir cooperation with Gupta family business efforts.  

As a part of ir corrupt business enterprise, South African government officials and business executives discussed ways to capture government contracts and n move proceeds of those contracts through Gupta-owned businesses, it ded.

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