The potential income tax liability for Tegeta Exploration and Resources — a company with links to the Gupta family — after the apparent misuse of rehabilitation funds can be as high as R1.95bn. The State of Capture report by former public protector Thuli Madonsela shows that funds were transferred to the Bank of Baroda with the consent of the Department of Mineral Resources. There were significant shortfalls following the transfers. Tegeta took control of the Optimum Mine Rehabilitation Trust Fund and the Koornfontein Rehabilitation Trust Fund when it acquired Optimum Coal Mine Holdings from Glencore. The Optimum rehabilitation fund was valued at R1.46bn in June this year, and the Koornfontein fund stood at R280m in May.

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.