By Canadian Press

EDC expresses regret for US$41M loan to back Bombardier sale to Zuma allies

Aug 14, 2019 | 8:46 AM

OTTAWA — Canada’s export credit agency says it regrets a 2015 decision to lend US$41 million to a South African company owned by members of a family with ties to former president Jacob Zuma.

Export Development Canada executive vice-president Carl Burlock says in the months and years that followed, the agency became increasingly concerned about the loan it provided to Westdawn Investments to backstop the sale of Bombardier aircraft. 

Over that time, Burlock says in a statement, allegations related to corruption and political interference were mounting against members of the Gupta family, which owns the company.

He says EDC ended its business relationship with Westdawn in late 2017 and the company has responded by filing a lawsuit in the United Kingdom against the agency to contest the deal’s termination.

Burlock says the agency’s decision to support the purchase was in line with its international commitments under the Organization for Economic Co-operation and Development, and that it relied on the fact there were no formal charges or active investigations related to the allegations.

GST Holiday

Federal government's two-month GST holiday begins

4h ago

Imminent need

Council set to discuss possible location for homeless shelter on 15th Street

9h ago

International Spotlight

P.A.'s Howe one of 4 Sask. born players named to Canada's World Junior roster

Dec 13, 2024

Zuma resigned as South Africa’s president in 2018 after a near-decade-long tenure marked by persistent corruption allegations. 

The Canadian Press