Shadow State. Camaren Peter

target="_blank" rel="nofollow" href="#uf4f6de71-dbbb-5e2a-a2c2-38eabacdeeec">Chapter 2 details how a national multi-billion-rand telecoms company, Neotel, benefited from significant Transnet work, but seemingly only as a result of an obscure Gupta-linked shell company, Homix, which acted as a broker between Neotel and Transnet. In addition, global software giant SAP was strongly encouraged by Transnet to partner with a Gupta entity, Global Softech Solutions, in order to win Transnet work.

       Procurement

      Liebherr Africa, a German maker of cranes and a supplier of Transnet, was reportedly pressured by Transnet to partner with Burlington Strategy Advisors, which is a subsidiary of Regiments Capital (see Chapter 2) and which also ultimately paid money into Homix.

       Brokers at work: moving the resources

      In July 2015 amaBhungane presented the first detailed analysis of how the Guptas allegedly laundered the proceeds of their business activities in an operation that centred on Homix.¹³

      This pattern displays the three classic money-laundering characteristics of placement, layering and integration described above.

      In moving their money transnationally the Guptas appear to have made extensive use of Hong Kong, which is infamous as a money-laundering capital and where, in the 1960s, 1970s and 1980s, money launderers and couriers made a living out of providing access to underground financial services. While regulations have been significantly tightened, professional money-laundering networks remain active in the country.

      The Guptas’ movement of their money through Hong Kong is likely to prove to be only a subset of the full extent of their transnational organisation and movement of rents. The Gupta-linked companies that feature most prominently in the Hong Kong movement of money are Regiments Asia Ltd (unrelated to the South African company Regiments), Tequesta Group Ltd and Morningstar International Trade Ltd, which shares a Hong Kong address with three companies in which Salim Essa is listed as the director: Regiments Asia, Tequesta Group and VR Laser Asia (Table 1.1).

Table 1.1. Known outflows from Gupta-linked companies and individuals