NPA heads to court to seek permission to sell multi-billion Optimum coal mine

2 July 2022

The NPA has lodged a forfeiture application for Optimum Coal Mine to Optimum Coal Terminal to the tune of over R3.4 billion. The application seeks to have the shares owned by Tegeta Exploration & Resources (Pty) Ltd to be forfeited to the state on grounds of having been acquired through proceeds of unlawful activities and the instrumentality of money laundering under the Prevention of Organised Crimes Act (POCA).

Ground work already done resulted in a preservation order handed down in the NPA’s favour by the High Court of South Africa, Gauteng Division, Pretoria on 23 March 2022.

The court ruled on two interlinked matters. 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. In court papers, the underlying claim to the Templar stake preserved are funds that were advanced by the Gupta family's Dubai based 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.

Deputy National Director of Public Prosecutions Adv Ouma Rabaji-Rasethaba, responsible for asset forfeiture and deponent of the papers, says that this is one of the many ways that the NPA seeks to recoup proceeds of state capture, as recommended in the Zondo Commission Report on State Capture.

The NPA remains committed to ensuring that the recommendations of the Commission are prioritised.

Issued by Sindisiwe Seboka, Investigating Directorate Spokesperson, 3 July 2022