In a critical step towards recouping billions in Gupta-linked assets allegedly stolen from SA during the state capture era, the National Prosecuting Authority (NPA) moved one step closer to being able to permanently seize the family’s prized coal assets.
On Wednesday, the Pretoria high court issued preservation orders for Gupta business Tegeta’s shares in Optimum Coal Mine and its day-to-day business, and Optimum Coal Terminal. They were granted in terms of the Prevention of Organised Crime Act. This means the assets, which may be worth more than R3bn, will be “held” with a curator pending the start of asset forfeiture proceedings.
That means the business rescue practitioners’ planned sale, which had to be executed by Friday, is also off the table. The NPA is set to initiate forfeiture proceedings within 90 days of some details appearing in the Government Gazette.
Wednesday’s multibillion-rand legal feat could prove a turning point for the NPA and national director of public prosecutions Shamila Batohi, whose appointment by President Cyril Ramaphosa in 2018 sparked optimism that perpetrators of grand corruption would be brought to book. That optimism has largely been replaced by disillusionment as prosecutions failed to materialise.
Netting what was regarded as the jewels in the crown of the family’s business empire could turn the tide for the NPA and it comes a month after global policing body Interpol issued red notices — a request to law enforcement across the world to arrest a suspect pending extradition — for two Gupta brothers. In February, the outgoing head of the NPA’s Investigative Directorate (ID), Hermione Cronje, said Interpol had added Atul and Rajesh “Tony” Gupta to its most-wanted list for money laundering and fraud.
The family was placed at the centre of state capture by witnesses at the Zondo commission. The Guptas and Duduzane Zuma, a son of former president Jacob Zuma, shared business interests, from media to mining.
Testifying to the commission in October 2019, Duduzane Zuma described his dealings with Tony Gupta, saying “he is a business partner and he is also a very dear and close friend”.
On Wednesday, judges Dawie Fourie and Mandla Mbongwe granted the preservation orders and ruled a curator must be appointed to steer the Guptas’ erstwhile coal assets. During argument, they heard evidence based on material from the state capture inquiry about the coal mines and how the Guptas financed the acquisition. That evidence included circular financial flows and sham loans, which were analysed by a forensic expert at the NPA.
When Tegeta strong-armed multinational mining company Glencore into selling Optimum in late 2015, Duduzane Zuma acted as a BBBEE partner. Ownership was transferred in 2016.
Not long after Zuma resigned as head of state in February 2018 and the Guptas fled the country, Optimum went into business rescue. An imminent sale of the assets prompted the NPA to seek preservation on an urgent basis.
ID spokesperson Sindisiwe Seboka described it as the most valuable preservation order in NPA history worth upwards of a reported R3.4bn.
The judges concluded that the national director of public prosecutions had “demonstrated that Tegeta obtained the funds to acquire the Optimum property through fraud, money laundering, corruption and theft”.
Wednesday’s win suggests the next few months could see an acceleration in the NPA’s pursuit of state capture loot.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.