DA lays criminal charges against Gupta-linked companies
The charges relate to fake BEE certificates allegedly used to procure Eskom deals.
The Tegeta application for the liquidation of Oakbay Investments details the sorry state of the Gupta companies now in business rescue. Picture: Supplied to Moneyweb
DA MP Dean Macpherson has confirmed that the Democratic Alliance will be laying criminal charges against the Tegeta and Optimum mines as well as Trillian, all Gupta-linked companies that allegedly used fraudulent BEE certificates to secure contracts and payments from power utility Eskom.
The criminal charges will also be extended against executives who were role players in the alleged fraudulent activities.
This includes former Eskom chief financial officer Anoj Singh, former acting head of group capital Prish Govender, former Eskom head of procurement Edwin Mabelane, former head of fuel sourcing Ayanda Nteta and Simone Mitchell, an accountant for BEE Matrix.
All the executives allegedly failed to report misrepresentation to the commission.
The DA will also lay complaints with the Independent Regulatory Board for Auditors (IRBA) and the South African Institute for Chartered Accountants.
“The DA will lay criminal charges against Tegeta, Optimum and Trillian for misrepresentation of their BEE status and for providing false information,” Macpherson said.
The findings follow a complaint laid by the DA over two years ago and the Broad-Based Black Economic Empowerment (BBBEE) Commission’s findings confirmed that the BEE certificates belonging to the Gupta-linked companies were fake.
The commission revealed that the strength of the black shareholding of Optimum Coal Mine was taken at face value from third-party information supplied by auditors SizweNtsalubaGobodo. Trillian Consulting actually had 0% black ownership.
“The DA held the belief that the BEE certificates supplied to Eskom by Tegeta, Optimum and Trillian were fraudulent, as none of the companies could be considered micro-enterprises with a turnover of less than R10 million per year,” Macpherson said.
Macpherson said the certificates were given a stamp of authenticity by BEE verification agency BEE Matrix and they were accepted by Eskom executives.
“This is another nail in the coffin in the Gupta empire and a piece of the puzzle in state capture. It is also a reminder of how BEE has been abused by the elite and politically connected to lock out competition, inflate costs and entrench patronage networks,” he said.
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