State of Capture report: Oakbay’s countdown to billion-rand bonanza
Questions raised about Tegeta's handling of R1.75bn rehabilitation fund, with massive shortfalls reported in two accounts
The public protector’s State of Capture report details the apparent misuse of rehabilitation funds worth R1.75bn at two Glencore coal mines bought by Tegeta Exploration & Resources, with the bulk of those funds allocated elsewhere in violation of various regulations. Former public protector Thuli Madonsela outlined how the relationship between Eskom and Glencore faltered over pricing of coal from Optimum Colliery, with an increasingly uncompromising and hardline stance from the state-owned power utility forcing the coal miner into business rescue. Tegeta is a partly owned subsidiary of Oakbay Investments, a company owned by the Gupta family which is alleged in the report to have an inappropriate relationship with President Jacob Zuma and various cabinent ministers and undue influence over a number of state-owned companies, according to the report. Tegeta bought Optimum for R2.15bn in April this year, quickly securing sweetheart deals from Eskom, as well as an upfront payment of more...
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