It was disclosed yesterday that Gupta’s Oakbay Investments bagged R233 million of its R2.62 billion total revenue from government.
BuzzSouthAfrica gathered that the revelation was obtained from a statement released by Gupta’s Oakbay Investments.
The statement detailed Oakbay’s revenue for the last financial year which ended on 29 February 2016.
As derived from the statement, Oakbay’s revenue increased by 7 percent from the previous year.
And, 8.9 percent of the Gupta’s Oakbay Investments revenue, came from government business.
Oakbay Investment’s largest division – Mining – generated R1.17 billion which represents 44.5 percent of the total revenue. Here, the establishment specified that it’s mining company – JIC Mining Services – didn’t gain any government contract.
Also, it’s privately held Sahara Computers was identified as the second highest contributor to the revenue generated. Oakbay indicated that “Sahara also does not have any government contracts.”
That, it said, follows “a deliberate decision taken by its Board in 2008.”
Furthermore, the group related that its media outlet contributed to the revenue. However, further details weren’t divulged.
Oakbay’s Chief Financial Officer of Resources and Energy, Trevor Scott added that the auditing of profit figures for the Resources and Energy sector were not concluded at the time of the results release.
Nonetheless, Scott revealed that the unaudited operating profit figure was approximately around R500 million.
Commenting, Oakbay’s Chief Executive, Nazeem Howa expressed that he’s expecting the revenue records to dispel the state capture narratives about the group.
“I hope this will help audiences understand our operations and dispel some of the myths that have been built up about our Group. Especially, the myth that we are heavily reliant on government business…,” Howa remarked.
Last month, BuzzSouthAfrica confirmed that the Gupta family intends to sell all the Gupta’s South African shareholding before the year runs out.
According to the family, their decision to quit SA businesses will benefit everyone.