Gupta linked directors convicted of R107.5m fraud
Two company directors and three mining firms linked to the Gupta family have been convicted of fraud and money laundering involving R107.5m from mine rehabilitation trusts meant to repair environmental damage at Mpumalanga coal mines.
The Gauteng High Court (Johannesburg) convicted Ronica Ragavan, Pushpaveni Ugeshni Govender, Optimum Coal Mine (Pty) Ltd, Koornfontein Mines (Pty) Ltd and Tegeta Exploration and Resources (Pty) Ltd for unlawfully diverting money held in trust to pay mining contractors and other third parties.
According to News24, Idac said the funds were legally required to be used exclusively to rehabilitate environmental damage at the Optimum and Koornfontein coal mines.
Judge Mudunwazi Makamu convicted the accused on four counts, two of fraud totalling R107.5m and two of money laundering in contravention of the Prevention of Organised Crime Act.
The Guptas acquired Optimum Coal Mine and Koornfontein Mines in 2015 through their company Tegeta Exploration and Resources, which was partly owned by the family.
All five accused were convicted on charges relating to R7.5m from the Optimum Mine Rehabilitation Trust and R100m from the Koornfontein Rehabilitation Trust.
Idac spokesperson Henry Mamothame said Ragavan was a director of Koornfontein Mines and Tegeta when the offences were committed, while Govender was a director of Optimum Coal Mine and, from 26 April 2016, a trustee of both rehabilitation trusts.
‘All accused had pleaded not guilty,’ Mamothame said.
‘Former deputy director-general of the then-Department of Mineral Resources, Maleatlana Joel Raphela, was found not guilty on all counts against him.’
He said the offences violated regulations requiring holders of mining rights to set aside money to rehabilitate mined land.
The matter was postponed to 1 December for sentencing.
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.
