Sahara Computers, the PC distributing company owned by the Gupta family, retrenched employees yesterday, reportedly due to woes with major local banks.
According to a report on IOL, 40 out of 200 employees at Sahara were let go by CEO Stephan Nel following increasing concerns over the stability of Oakbay Investments, its parent company.
The Guptas have made headlines over the past couple of years, largely due to their relationship with President Jacob Zuma and others in the ANC, as well as public and private business dealings that have led to concerns about alleged state capture.
Banks and auditing firms such as FNB, Absa, Wesbank, KPMG began severing their ties with the family. This led to questions about the future of all businesses under Oakbay Investments, which is said to employ thousands of locals.
In April, hundreds of Oakbay Investments employees marched to major banks in an effort to save their jobs for fear that they would lose them.
Later that month, a letter allegedly written by employees pleading with banks to reverse their decisions, was circulated.
According to Nel, more retrenchments at Sahara are likely to be on the cards in future.[Source – IOL]