The court postponed the matter to 01 December 2026 for sentencing proceedings.
Picture File: Ronica Ragavan, the director of the Gupta’s company Islandsite Investments Pty Ltd, appearing at the North Gauteng High Court on 28 March 2017 in Pretoria. Picture: Gallo Images.
The Gauteng High Court in Johannesburg has convicted two company directors and three mining companies for fraud and money laundering involving R107.5 million linked to two mine rehabilitation trusts.
The court convicted Ronica Ragavan, Pushpaveni Ugeshni Govender, Optimum Coal Mine (Pty) Ltd, Koornfontein Mines (Pty) Ltd and Tegeta Exploration and Resources (Pty) Ltd of the offences.
The former Deputy Director General of the then Department of Mineral Resources, Maleatlana Joel Raphela, was found not guilty on all counts.
Ragavan was a director of Koornfontein Mines and Tegeta at the time 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 the accused had pleaded not guilty.
Crimes committed
The offences concerned violations of regulations requiring holders of mining rights to set aside money to rehabilitate the land they mine. The National Environmental Management Act 107 of 1998 and its financial provision regulations require that this money be kept available for that purpose alone.
During the trial, the state highlighted that Tegeta bought Optimum Coal Mine and Koornfontein Mines from Glencore, and the sale took effect on 08 April 2016. With the mines came control of their two rehabilitation trusts. On 01 February 2016, the trusts held about R1.44 billion (Optimum) and R278.5 million (Koornfontein).
However, the accused unlawfully used the money to pay mining contractors and other third parties.
Optimum Mine Rehabilitation Trust
In relation to Optimum Mine Rehabilitation Trust, it emerged that on 23 May 2016, R7.5 million was transferred from the trust’s Standard Bank account to an Optimum Coal Mine account. Ragavan and Govender signed the letter asking the bank to make the transfer.
The State argued that the bank was falsely told the transfer was authorised and that the money was for rehabilitation work. On the same day, the court found that R7.5 million was combined with R9.5 million from Tegeta, ultimately forming part of a R26.4 million payment to a contractor, Klipbank Mining, for underground mining done in April 2016. The court found that the funds were used for rehabilitation work and were never repaid to the trust.
Koornfontein Rehabilitation Trust
Regarding the Koornfontein Rehabilitation Trust, the state told the court that in May 2016, the trust moved R280 million from First National Bank to the Bank of Baroda.
On 05 May 2016, the department of Mineral Resources granted Tegeta approval in principle to utilise the trust funds for concurrent rehabilitation, subject to three conditions. The version of the letter handed to the Bank of Baroda did not contain the conditions.
Subsequently, on 06 June 2016, the trust placed R170 million in a fixed deposit and pledged it as security for a R150 million loan facility to Koornfontein Mines. The bank received written undertakings that the loan would be utilised only to rehabilitate the mine.
The bank paid out R100 million on 13 June 2016, and within two days, the money moved from Koornfontein Mines and Tegeta accounts to a Tegeta account at the State Bank of India.
An amount of R67.8 million was subsequently paid to two mining contractors, Klipbank Mining and Coalcor Mining. The trust then sent another R30 million to the Bank of Baroda, which paid it to other companies, including Koornfontein Mines and Optimum Coal Mine.
It was discovered that none of the R100 million was utilised for rehabilitation, and no rehabilitation work was done at Koornfontein. The trust’s R170 million stayed pledged to the bank, and at risk, for a year.
Judgment on fraud and money laundering
Judge Mudunwazi Makamu convicted the accused on four counts.
- Count 1, fraud (R7.5 million, Optimum Mine Rehabilitation Trust): Ragavan, Govender, Optimum Coal Mine and Tegeta were found guilty on this charge.
- Count 4, money laundering (R7.5 million), in contravention of section 4 of the Prevention of Organised Crime Act 121 of 1998: Ragavan, Govender, Optimum Coal Mine and Tegeta were found guilty on this charge.
- Count 5, fraud (R100 million, Koornfontein Rehabilitation Trust): Ragavan, Govender, Koornfontein Mines and Tegeta were found guilty on this charge.
- Count 8, money laundering (R100 million), in contravention of section 4 of the Prevention of Organised Crime Act: Ragavan, Govender, Koornfontein Mines and Tegeta were found guilty on this charge.
The court postponed the matter to 01 December 2026 for sentencing proceedings and extended bail for Ragavan and Govender until the matter is finalised.
The National Director of Public Prosecutions (NDPP), Adv Andy Mothibi, welcomed the conviction.
“Rehabilitation trusts exist to ensure that surrounding communities are not left to carry the cost of the damage mining leaves behind. We commend the prosecution and investigation team for securing such a crucial conviction. We remain committed to the fight against corruption,” said Mothibi.
