Optimum Coal Mine was paid for with criminal funds

The acquisition of Optimum Coal Holdings (OCH) by Tegeta Exploration and Resources was just one of the major gatherings that brought on the institution of the Zondo Commission of Inquiry into allegations of state seize, and was a central aim of the General public Protector’s report ‘State of Capture’, introduced in October 2016.

The General public Protector (PP) located that the acquisition was pursued as a result of unlawful means and funded almost totally by proceeds of crime.

The commission arrived to the very same getting, as outlined in Part VI Vol III of the Zondo Report (pages 80 to 95).

The best valuable entrepreneurs of Tegeta were being:

• The Guptas right or indirectly held 65.13%
• Duduzane Zuma indirectly held 19.49%
• Salim Essa indirectly held 6.73%
• Ronica Ragavan indirectly held 6.49%
• Ashu Chawla and other Gupta workforce indirectly held 2.16%.

The criminal task of attaining OCM

The legal shenanigans resorted to by puppets of the Guptas have currently been explained in the Eskom area of the Zondo report.

Really briefly:

Brian Molefe, seconded to Eskom in April 2015, “immediately set about scuppering sophisticated negotiations amongst Eskom and Glencore” over a penalty levied by Eskom.

Molefe and Eskom board chair Dr Ben Ngubane wished to suspend all mining licences to Eskom.

Then-minister of mineral resources Ngoako Ramatlhodi refused, and in September 2015 former president Jacob Zuma replaced him with Mosebenzi Zwane.

Molefe also scuppered the sale of the Optimum Coal Mine (OCM) to the Phembani Team.

On 22 November 2015 Eskom board member Mark Pamensky oiled the way, and recommended Atul Gupta that “Oakbay must make certain that a situation precedent for the OCH acquisition sale should really be Eskom’s withdrawal of the R2.17 billion penalty claim” and suggested Atul how to get the deal to be accepted by the Eskom board.

Study:

When Glencore rejected a R1 billion offer from Oakbay for OCM on 25 November 2016, the Division of Mineral Methods underneath Zwane issued spurious notices less than the Wellbeing and Safety Act in an try to shut down Glencore mines.

Glencore caved, and then Tegeta experienced to occur up with the money.

Former Eskom executives Matshela Koko and Anoj Singh “prepared a commitment for Eskom to prepay Tegeta R1.68 million” for a year’s supply of coal, irrespective of the truth that Hendrina appeared to be oversupplied.

The Eskom board unanimously adopted the resolution to pre-shell out the coal in December 2015, even while this was clearly in the pursuits of Tegeta and not Eskom.

By early April 2016, Tegeta was shorter of R600 million, and Eskom produced yet another prepayment of R659 million. The board signed off, and the payment was rushed through on 13 April 2016 by Singh and Molefe.

The R2.1 billion for Optimum was sourced from criminal cash

Tegeta compensated the buy value for Optimum of R2.1 billion on 13 April 2016.

The resources made use of for the acquisition had been for the most element proceeds of crime, specific under:

Supply	Amount
Eskom pre-payment	R660m
Eskom payment to Tegeta	R68m
Oakbay ‘loan’ to Tegeta	R158.5m
Albatime ‘loan’ to Tegeta	R104.5m
Trillian Asset Administration ‘loan’ to Tegeta	R152m
Centaur Mining ‘loan’ to Tegeta	R842.2m
Tegeta’s residual money in Financial institution of Baroda account	R100.5m
Complete	R2 085.7m

• The Albatime financial loan consisted of the illegal payment of R42 million from Regiments Cash and R56.2 million stolen from the Transnet Second Outlined Gain Fund (TSDBF).
• The Trillian payment incorporated an amount of R93.4 million that was unlawfully paid out by Transnet.
• Albatime transferred R110 million into a fastened deposit account at Lender of Baroda, which the bank applied as safety to progress a bank loan of R105.5 million to Tegeta.
• Trillian’s financial loan of R152 million arrived from the resources stolen from the TSDBF.
• Cash stolen from the TSDBF amounting to R160.2 million ended up transferred into a mounted deposit account at Lender of Baroda, which the lender utilized as safety to progress a bank loan of R104.5 million to Tegeta.
• Centaur Mining obtained the volume of R842.2 million from back again-to-again amenities the resource was laundered proceeds of criminal offense.
• Noteworthy, Duduzane Zuma’s beneficial fascination of 19.49% equates to a advantage of R342.8 million from criminally sourced money.

It is a prison offence to get proceeds of crime

The Zondo Commission referred to Area 2 of the Prevention of Organised Criminal offense Act (Poca), which helps make it a legal offence to receive proceeds of crime.

The fee is of the view that there are sensible grounds to believe that that Duduzane Zuma, Salim Essa, Ronica Ragavan, Ashu Chawla and customers of the Gupta spouse and children may possibly be guilty of contravening Portion 2 of Poca.

Study Components 5 and 6 of the Zondo Report: