Eighteen year ban for state-capture accused
Eric Wood and Niven Pillay, former directors of Gupta-linked companies heavily implicated in state capture, have been barred from working in financial services for 18 years, reports News24.
The Financial Sector Conduct Authority (FSCA) said its probe into Wood and Pillay found that, between 2009 and 2016, they engaged in a ‘pattern of conduct that was inconsistent with the standards of honesty, integrity and good governance’ expected of senior people in the financial services industry.
The investigation uncovered evidence of; improper payment arrangements, unlawful revenue-sharing and procurement practices’.
The FSCA said its probe considered findings of the Judicial Commission of Inquiry into Allegations of State Capture (Zondo Commission), which, in February 2022, released findings implicating Regiments Capital and Regiments Fund Managers in widespread corruption, including suspect advisory contracts, inflated fees and kickbacks at Transnet.
Wood and Pillay are among the first people implicated at the Zondo Commission to be personally debarred by the FSCA.
The ruling means neither of them will be allowed to offer financial services or act as a ‘key individual’ of a financial company until 2044.
Wood and Pillay served as senior officials at the scandal-plagued Regiments companies for years.
Both companies had licences to operate as financial services providers, putting them under FSCA oversight, according to News24.
Regiments Fund Managers’ licence was withdrawn in June 2020, while Regiments Capital’s licence lapsed in November that year.
Wood also served as CEO of Trillian, a financial advisory firm also heavily implicated in state capture, including in the Eskom-McKinsey scandal. Both Wood and Pillay have previously denied wrongdoing.
The FSCA sanction is the outcome of just one of several investigations and court cases involving Wood and Pillay, many of which critics say have dragged on for years since state capture allegations first emerged.
Wood was arrested in May 2022, and Pillay in August that same year, by NPA’s Investigating Directorate as part of the state’s case involving Transnet’s disastrous deal to procure 1 064 locomotives. Both were released on bail. The trial, which had been due to start in February, has yet to get underway.
Their co-accused include former Transnet bosses Brian Molefe, Anoj Singh and Siyabonga Gama.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
