Trustees of mine rehabilitation funds accused of ‘fraud’ and ‘theft’
Nearly R2bn earmarked for rehabilitation of collieries owned by the Gupta family’s Tegeta are to be transferred from Bank of Baroda to Nedbank
The National Prosecuting Authority (NPA) has calmed fears in the mining sector of the whereabouts of the nearly R2bn — earmarked for rehabilitation of the Optimum and Koornfontein collieries owned and operated by the Gupta family’s Tegeta Resources — by securing a transfer of the funds to Nedbank. It has also made damning findings against the trustees of the rehabilitation funds. In what could be a sign of prosecutions to come, the NPA’s Motlalekhotso Molelle, head of operations in the Asset Forfeiture Unit, accused the trustees of the Optimum Mine Rehabilitation Trust Fund and the Koornfontein Mine Rehabilitation Trust Fund of "theft" and "fraud" and of using the money in a way that violated the Income Tax Act, the Mineral and Petroleum Resources Development Act and the National Environmental Management Act. The trust funds held R1.46bn and R280m, respectively. The funds will be removed from the Bank of Baroda — the only bank that would deal with the Guptas after SA’s major commerc...
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