IN-DEPTH: Guptas got quick go-ahead for use of ring-fenced funds, Outa claims
Civil society body argues money for mine rehabilitation was diverted, writes Charlotte Mathews
Details about how the Gupta family-controlled Tegeta Resources tried to access funds ringfenced for the rehabilitation of the Optimum and Koornfontein mines emerged as new regulations relating to financial provisions for mine rehabilitation are about to be published for industry comment. Last week, the High Court in Pretoria issued an interim order, after an application by the Organisation Undoing Tax Abuse (Outa), a civil society organisation, to freeze the Optimum and Koornfontein mine rehabilitation trust funds held by the Bank of Baroda. Together, they amount to R1.75bn. The trustees have filed notice of their intention to oppose the application. Outa’s affidavit in support of its application argues the funds were or potentially could be diverted for purposes other than rehabilitation. For example, although mine rehabilitation trusts are supposed to have independent trustees, Koornfontein’s fund had only two, who were current or former employees of Gupta companies. Outa argues t...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
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.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.