A suspected mining fraud reveals the lengths to which Gupta-linked suspects went to nab R1.7bn meant for rehabilitating two coal mines in Mpumalanga.
Suspects stand accused of crimes including fraud, money laundering, forgery and perjury in the state’s latest case over alleged state capture.
If convicted they face fines of up to R100m, jail time of between 10 and 30 years, or both. The charge sheet, presented to suspects this week, shows what became of rehabilitating funds for mines the Guptas and former president Jacob Zuma’s son Duduzane owned via Tegeta.
The 52-page document provides a timeline of multimillion-rand transactions involving monies in accounts at Standard Bank, FNB, Bank of Baroda and the State Bank of India. Independent Directorate (ID) head advocate Andrea Johnson drafted it after consultations with National Prosecuting Authority (NPA) boss advocate Shamila Batohi.
Earlier in May, Batohi promised parliament nine “seminal cases that will talk to the heart of state capture” would be in court in three to six months. Sindisiwe Seboka, spokesperson for the ID, confirmed this was among various “seminal cases” on state capture. She said the ID detected the alleged fraud while working on an Eskom matter with Hawks investigators.
On Thursday, former deputy director-general in the department of mineral resources Joel Raphela appeared in court and was released on R20,000 bail. A day earlier, he and two co-accused were arrested and made a first appearance in the Randburg magistrate’s court.
Ronica Ragavan, the former Oakbay CEO who held numerous positions in Gupta-linked entities, and Ugeshni Govender stood in the dock with Raphela on Wednesday. Ravindra Nath, another accused, has evaded SA law enforcement. His whereabouts is unknown, and he will be charged in absentia.
Raphela’s midweek appearance was cut short when he took ill before the magistrate and struggled to walk in the holding cell. He was rushed to hospital and returned the next day. All four accused are due back in court on June 22. They have been furnished with the charge sheet.
In it, Johnson tells the court suspected crimes were committed with funds held in trusts and meant for the rehabilitation of Koornfontein and Optimum. Tegeta, owned by the Guptas with Duduzane Zuma as BBBEE partner, acquired them when they bought Optimum from Glencore.
A flurry of transactions followed accessing the rehabilitation fund, with about R100m transferred to Tegeta’s account with the State Bank of India by June. Almost R68m flowed out that account in under seven days up until June 22. Johnson is adamant none of those funds were not used for rehabilitation.
When the matter goes to trial she will argue R7.5m from Optimum’s rehabilitation trust and R100m from Koornfontein’s rehabilitation trust “constituted proceeds of unlawful activities” as defined in the Prevention of Organised Crime Act. On the ID’s version “the funds were derived and received in connection with or as a result of unlawful activities”.
Johnson will submit Optimum and Tegeta used the rehabilitation funds “through simulated transactions” and they “effectively funded” businesses via a range of unlawful mechanisms executed by the “controllers” including the accused.
Johnson claims the suspects “acted as perpetrators and/or accomplices or had a common purpose and acted together” to commit the nine offences (with some alternatives) she detailed in the charge sheet. In doing so, she alleges they may be guilty of “enabling or assisting a person who had committed or was committing an offence” in SA or abroad.
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