Gupta-linked Regiments Capital former senior officials Niven Pillay and Eric Wood have been barred from providing financial services and serving as Key Individuals (KI) of a financial service provider.
The Financial Sector Conduct Authority (FSCA) has barred the duo following an investigation into their conduct while they were senior officials at Regiments Capital and Regiments Fund Managers.
The disbarment against the pair is valid for 18 years.
Duo flagged by Zondo commission
According to the FSCA, the investigation considered findings by the State Capture Commission led by former chief justice Raymond Zondo, that Wood and Pillay were involved in conduct that fell short of the standards of honesty, integrity and good governance expected in the financial services industry between 2009 and 2016.
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The Zondo commission found that the financial advisory firm was a vehicle of corruption and money laundering in the country. It was found to have secured lucrative contracts with state-owned entities including Transnet, City of Johannesburg, and the Airports Company South Africa (ACSA) by paying massive kickbacks to Gupta-linked shell companies.
The authority noted that the commission recommended that the conduct of the individuals and entities involved be investigated further for possible criminal offences and that steps be considered to recover money where appropriate.
“The evidence inter alia established the existence of improper payment arrangements and unlawful revenue-sharing and procurement practices.
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“The FSCA concluded that the conduct of Wood and Pillay adversely affected their fitness and propriety, particularly in relation to the requirements of honesty and integrity applicable to key persons within institutions operating in the financial services sector,” said the FSCA.
The National Prosecuting Authority had managed to freeze over R1-billion in assets belonging to Regiments Capital. The company was placed into final liquidation in September 2020 and dismantled. The collapse was due to severe commercial insolvency.
- Niven Pillay and Eric Wood, former senior officials at Gupta-linked Regiments Capital, have been barred by the FSCA from providing financial services and serving as Key Individuals for 18 years.
- The FSCA's action followed an investigation based on findings by the State Capture Commission led by Raymond Zondo, highlighting misconduct between 2009 and 2016.
- The Zondo commission found Regiments Capital acted as a vehicle for corruption and money laundering, securing contracts with state entities through kickbacks to Gupta-linked companies.
- The FSCA concluded that Wood and Pillay's conduct showed a lack of honesty and integrity, affecting their fitness and propriety in the financial services sector.
- Regiments Capital was placed into final liquidation in September 2020 after the NPA froze over R1-billion in the company's assets due to severe commercial insolvency.
