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Gupta associates arrested over looting of Optimum, Koornfontein funds released on bail
The case has been postponed to 22 June for the adding of further accused.
Ronica Ragavan, Pushpaveni Govender and Joel Raphela appearing before the Randburg Magistrate’s Court after they were arrested on Tuesday. Picture: Supplied
Two associates of the Gupta family, arrested on Wednesday in connection with the looting of rehabilitation funds of the Optimum and Koornfontein coal mines, have been granted bail of R20 000 each.
Former Tegeta Exploration and Resources director, Ronica Ragavan, the former trustee of Optimum Coal Mine, Pushpaveni Govender, and the former deputy director-general (DDG) of the Department of Mineral Resources, Joel Raphela, appeared before the Randburg Magistrate’s Court after they were arrested.
The trio face charges of fraud, forgery, uttering, perjury and money laundering of R107.5 million for mine rehabilitation funds for the Optimum Coal Mine trust account and Koornfontein Mine trust account in 2016.
The mines are linked to the controversial Gupta family who stand accused of corruption and state capture allegations.
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During court proceedings on Wednesday, Ragavan and Govender were each granted bail of R20,000. However, Raphela had to be rushed to hospital during proceedings for medical attention due to ill health.
Raphela, as former the DDG, is accused of authorising the mine rehabilitation funds to be released from the Koornfontein Mine rehabilitation trust.
Magistrate Hleziphi Mkhasibe postponed the case to 22 June 2022 for the adding of further accused. Optimum Coal Mine, Koornfontein Mines and the Guptas’ Tegeta Exploration and Resources were also charged over the matter.
R107.5m mine rehabilitation funds
According to the NPA’s Investigating Directorate (ID), the trio stands accused of orchestrating a scheme where they requested the funds held in the two rehabilitation funds to be transferred into other current company accounts and using the funds for purposes in breach of the Department of Mineral Resources’ rules.
In 2015, Tegeta took control of the Optimum Mine’s rehabilitation trust and the Koornfontein rehabilitation trust.
In terms of the sale agreement of the mines to the Guptas, the rehabilitation funds had to be converted into cash by 15 February 2016.
However, on 23 May 2016, R7.5 million was transferred from the Optimum Mine rehabilitation trust account at Standard Bank to Optimum Coal Mine.
The spokesperson for the ID Sindisiwe Seboka said the amount was used as part of the payment of R26.4 million to Klipbank Mining, which was not in accordance with the requirements of the trust.
Seboka said in June 2016, Ragavan and Govender obtained R100 million from the Koorfontein trust account to act as surety for a loan in favour of Tegeta for the purchase of Optimum Coal Mine.
“The Department of Mineral Resources gave consent in terms of section 11(1) of the Mineral and Petroleum Resources Development Act (MPRDA) for the disposal of the 100% controlling interest held by Optimum Coal Holding in accordance to Optimum Mine and Koornfontein Mine to Tegeta for mining rights and prospecting rights.
“According to the MPRDA, the minister of mineral resources is 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,” Seboka said in a statement.
Compiled by Thapelo Lekabe
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