The Pretoria High Court on Wednesday thwarted the sale of Gupta-owned Optimum Coal Mine (OCM) in Middleburg, Mpumalanga and handed a preservation order of the mine to the National Prosecuting Authority (NPA).
R3.4-billion worth of assets of the mine have now been frozen. The OCM has been in business rehabilitation since 2018 when the NPA brought the preservation order. The coal mining company was on the verge of a sale to a former associate of the Gupta family, Daniel McGowan, who owns Liberty Coal.
Earlier this month, the communities surrounding the OCM shut down the mine and accused the NPA of interference. The protestors blamed the NPA of blocking the sale of the mine to new investors, jeopardising the communities’ prospects of securing jobs.
Clifford Masinga, secretary-general of Mpumalanga Active Movement, said at the time that the residents had noted the NPA’s decision to seize the mine.
He was quoted as saying: “As the court case continues in the Pretoria High Court, we are becoming more convinced that the NPA is not acting in good faith. Its actions are not in the interest of those most affected by the closure of the mine.
“For the past four years, we have been watching as the mighty and powerful play football with our livelihoods, but we are now growing even more hopeless when we see that a state institution meant to protect the poor and vulnerable seeks to oppress us.”
Sindisiwe Seboka, investigative directorate spokesperson has, in a statement, welcomed the preservation saying it is by far the NPA’s biggest win in history.
Two judgments were given at the high court, Seboka explained: “The first pertains to all of Gupta-owned Tegeta shares in Optimum Coal Mine and Optimum Coal Terminal. It also includes OCM’s business. All are preserved under section 38 of the Prevention of Organised Crimes Act 121 of 1998.
“The second pertains to the claim of R1.3-billion of Templar in relation to OCM, also preserved. This takes the total preservation to R3.4-billion. In court papers, the underlying claim to the Templar stake preserved are funds that were advanced by the Gupta family Dubai Company, Griffin Line Trading LLC, a company nominally controlled by Ajay Gupta’s son Kamal Singhala.
“Daniel McGowan, the owner of Templar, has himself stated under oath that the funds advanced by Griffin Line derived from money stolen from the South African government and laundered via Mr Singhala on behalf of his father and wider family members.”
Seboka added that the ruling by judges D Fourie and M Mbongwe has annulled the execution of the OCM business rescue plan, “which would have had OCM sold to Liberty Coal. A sale that would have legitimised the proceeds of crime.
“The order further states that once the curator has valued the OCM, the curator and the business rescue practitioners shall endeavor to find a purchaser for OCM to its fair value.”
The curator is expected to present his report within 70 days.
Also read: NPA interference in Optimum Mine’s affairs irks community
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