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The acquisition of Optimum Coal Holdings (OCH) by Tegeta Exploration and Sources was one of many main occasions that triggered the institution of the Zondo Fee of Inquiry into allegations of state seize, and was a central focus of the Public Protector’s report ‘State of Seize’, launched in October 2016.
The Public Protector (PP) discovered that the acquisition was pursued by way of illegal means and funded virtually fully by proceeds of crime.
The fee got here to the identical discovering, as outlined in Half VI Vol III of the Zondo Report (pages 80 to 95).
The last word helpful homeowners of Tegeta have been:
- The Guptas instantly or not directly held 65.13%
- Duduzane Zuma not directly held 19.49%
- Salim Essa not directly held 6.73%
- Ronica Ragavan not directly held 6.49%
- Ashu Chawla and different Gupta workers not directly held 2.16%.
The felony venture of buying OCM
The felony shenanigans resorted to by puppets of the Guptas have already been described within the Eskom part of the Zondo report.
Very briefly:
Brian Molefe, seconded to Eskom in April 2015, “instantly set about scuppering superior negotiations between Eskom and Glencore” over a penalty levied by Eskom.
Molefe and Eskom board chair Dr Ben Ngubane needed to droop all mining licences to Eskom.
Then-minister of mineral sources Ngoako Ramatlhodi refused, and in September 2015 former president Jacob Zuma changed him with Mosebenzi Zwane.
Molefe additionally scuppered the sale of the Optimum Coal Mine (OCM) to the Phembani Group.
On 22 November 2015 Eskom board member Mark Pamensky oiled the best way, and suggested Atul Gupta that “Oakbay ought to be sure that a situation precedent for the OCH acquisition sale ought to be Eskom’s withdrawal of the R2.17 billion penalty declare” and suggested Atul how one can get the deal to be accepted by the Eskom board.
Learn:
When Glencore rejected a R1 billion supply from Oakbay for OCM on 25 November 2016, the Division of Mineral Sources underneath Zwane issued spurious notices underneath the Well being and Security Act in an try to shut down Glencore mines.
Glencore caved, after which Tegeta needed to provide you with the money.
Former Eskom executives Matshela Koko and Anoj Singh “ready a motivation for Eskom to prepay Tegeta R1.68 million” for a yr’s provide of coal, even supposing Hendrina gave the impression to be oversupplied.
The Eskom board unanimously adopted the decision to pre-pay the coal in December 2015, regardless that this was clearly within the pursuits of Tegeta and never Eskom.
By early April 2016, Tegeta was in need of R600 million, and Eskom made one other prepayment of R659 million. The board signed off, and the cost was rushed by way of on 13 April 2016 by Singh and Molefe.
The R2.1 billion for Optimum was sourced from felony funds
Tegeta paid the acquisition value for Optimum of R2.1 billion on 13 April 2016.
The funds used for the acquisition have been for probably the most half proceeds of crime, detailed under:
Supply | Quantity |
Eskom pre-payment | R660m |
Eskom cost to Tegeta | R68m |
Oakbay ‘mortgage’ to Tegeta | R158.5m |
Albatime ‘mortgage’ to Tegeta | R104.5m |
Trillian Asset Administration ‘mortgage’ to Tegeta | R152m |
Centaur Mining ‘mortgage’ to Tegeta | R842.2m |
Tegeta’s residual funds in Financial institution of Baroda account | R100.5m |
Whole | R2 085.7m |
- The Albatime mortgage consisted of the illegal cost of R42 million from Regiments Capital and R56.2 million stolen from the Transnet Second Outlined Profit Fund (TSDBF).
- The Trillian cost included an quantity of R93.4 million that was unlawfully paid by Transnet.
- Albatime transferred R110 million into a set deposit account at Financial institution of Baroda, which the financial institution used as safety to advance a mortgage of R105.5 million to Tegeta.
- Trillian’s mortgage of R152 million got here from the funds stolen from the TSDBF.
- Funds stolen from the TSDBF amounting to R160.2 million have been transferred into a set deposit account at Financial institution of Baroda, which the financial institution used as safety to advance a mortgage of R104.5 million to Tegeta.
- Centaur Mining obtained the quantity of R842.2 million from back-to-back services; the supply was laundered proceeds of crime.
- Noteworthy, Duduzane Zuma’s helpful curiosity of 19.49% equates to a good thing about R342.8 million from criminally sourced funds.
It’s a felony offence to obtain proceeds of crime
The Zondo Fee referred to Part 2 of the Prevention of Organised Crime Act (Poca), which makes it a felony offence to obtain proceeds of crime.
The fee is of the view that there are cheap grounds to consider that Duduzane Zuma, Salim Essa, Ronica Ragavan, Ashu Chawla and members of the Gupta household could also be responsible of contravening Part 2 of Poca.
Learn Elements 5 and 6 of the Zondo Report:
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