Former department of mineral resources & energy deputy director-general Joel Raphela was rushed to hospital from court on Wednesday after he was arrested earlier with two Gupta associates.
Also arrested were Gupta family associates ex-Tegeta Exploration and Resources director Ronica Ragavan and former trustee of Optimum Coal Mine Pushpaveni Govender in connection with a R107.5m mine rehabilitation project.
The trio faced charges of fraud, money laundering, forgery, uttering and perjury.
During their first appearance in the Randburg magistrate’s court, Raphela was without legal representation and seemed to struggle to respond to questions from magistrate Hleziphi Mkhasibe.
While in the holding cells during an adjournment, Raphela appeared unable to walk independently and was taken to hospital.
The court granted bail of R20,000 to Ragavan and Govender. The state did not oppose their release and the trial was postponed to June 22. The court said bail application arrangements for Raphela would be arranged once he was stable.
Sindisiwe Seboka, the Investigating Directorate’s spokesperson, said in 2015 Tegeta took control of the Optimum Mine Rehabilitation Trust and the Koornfontein Rehabilitation Trust.
In terms of the sale agreement, the rehabilitation funds had to be converted into cash by mid-February 2016. Later that month, R7.5m was transferred from the Optimum Mine Rehabilitation Trust account at Standard Bank to Optimum Coal Mine and was used as part of the payment of R26.4m to Klipbank Mining, “which is not in accordance with the requirements of the trust regardless of what the funds were used for”.
Ragavan and Govender obtained R100m from the Koornfontein Trust Account in June 2016 as surety for a loan in favour of Tegeta for the purchase of Optimum Coal Mine, said Seboka.
The department gave consent for the disposal of the 100% controlling interest held by Optimum Coal Holdings in Optimum Mine and Koornfontein Mine to Tegeta for mining rights and prospecting rights.
Seboka said according to the Mineral and Petroleum Resources Development Act, the responsible minister was expected to keep the rehabilitation funds to deal with rehabilitation and remediation of adverse environmental impact of prospecting, exploration and mining operations when a mine is sold off or closes.
“The holder of the right or permit must ensure that the financial provision is equal to the amount of the actual costs of implementing the plans to rehabilitate the mine and environment for a period of 10 years after the closure of the mine,” she said.
“In this case, the trustees, so cited in the case, and company directors are accused of orchestrating a scheme where they requested the funds held in the two rehab funds to be transferred into other current company accounts and used for purposes in breach of the department of mineral resources rules.”
Raphela, as former DDG, stands accused of authorising the funds to be released from the Koornfontein Mine Rehabilitation Trust, added Seboka.
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