Members of the Gupta family Atul and Ajay Gupta, have left the country. This following controversial allegations about their influence on ministerial appointments.
After months of political tension, the two brothers have also resigned from their Oakbay Investment Company, but have not yet sold their shares.
The close ties between President Jacob Zuma and the Gupta family have raised suspicions and allegations of what many people have called state capture.
It is reported that the Guptas left on a private jet to Dubai on Thursday last week, and are now in India.
Xolani Gwala spoke to Dr. Azar Jammine, director and chief economist at Econometrix if this changes anything on the country's reputation and how it effects the economy.
Listen to the conversation below...
Scroll down for quotes from the conversation...
I'm not convinced that will persuade the banks. At the same time what Oakbay raised and remains the mystery is that, did the banks know something about Oakbay that has made them pull away or was there a pressure from some source for them to pull out of this whole thing.— Dr. Azar Jammine, director and chief economist at Econometrix
Morally, there is is the argument of about seven and half jobs being at stake. The other aspect is the value of the investment stands to collapse if there is no association with the bank or an accredited accountant, and in that regard obviously the Gupta family will stand to lose heavily, and Duduzane Zuma and through him the president, will lose heavily financially as well. There is a question of the whole lot of people whose livelihoods depends on the existence of the business.— Dr. Azar Jammine, director and chief economist at Econometrix
Reputation or risk is becoming a bigger and bigger issue and it's linked very much to the politics of the country at the moment- the fear of being associated with the notion of the state capture as it's being called, and to that extent the big challenge now to ask now is, will the resignation of the Guptas from the directorate and management of Oakbay be sufficient to encourage these banks or accounting firms to reestablish an association with Oakbay.— Dr. Azar Jammine, director and chief economist at Econometrix
The fact is, the Guptas, unlike Duduzane Zuma, have given no absolute indication of wanting sell their shares. So, they are still owners. Duduzane Zuma have said he wants to exit his investment.— Dr. Azar Jammine, director and chief economist at Econometrix
Unfortunately, the fact that they still hold shares in the company will continue to lend credence notion that they will continue to wield power to the existing management.— Dr. Azar Jammine, director and chief economist at Econometrix