NPA’s Investigating Directorate wins preservation of Gupta-owned Optimum mine

23 March 2022

The Investigating Directorate (ID) welcomes the biggest preservation order in the NPA history, to the tune of R3.4 billion.

The High Court of South Africa, Gauteng Division, Pretoria handed down judgment earlier today where two applications heard together were granted in favour of the ID. The first pertains to all of Gupta owned Tegeta shares in Optimum Coal Mine (OCM) and Optimum Coal Terminal. It also includes OCM’s business. All is preserved under section 38 of the Prevention of Organised Crimes Act 121 of 1998.

The second pertains to the claim of R1.3 billion of Templar in relation to OCM, also preserved. This takes the total preservation to R3.4 billion. In court papers, the underlying claim to the Templar stake preserved are funds that were advanced by the Gupta family Dubai Company, Griffin Line Trading LLC, a company nominally controlled by Ajay Gupta’s son, Kamal Singhala.

Daniel McGowan, the owner of Templar, has himself stated under oath that the funds advanced by Griffin Line derived from money stolen from the South African government and laundered via Mr Singhala on behalf of his father and wider family members.

The ruling by Judges D. Fourie and M Mbongwe who heard both matters together, has now cancelled the implementation of the OCM Business Rescue Plan, which would have had OCM sold to Liberty Coal. A sale which would have legitimised the proceeds of crime.

The order further states that once the curator has valued the OCM, the curator and the Business Rescue Practitioners shall endeavor to find a purchaser for OCM to its fair value.

The curator is required to serve his report within 70 days of the granting of the order to all opposing the anticipated forfeiture application.

Investigating Director Advocate Andrea Johnson commends the exceptional work done by the team to reach this unprecedented height.

Issued by Sindisiwe Seboka, Investigating Directorate Spokesperson, 23 March 2022