Court grants interdict to freeze Gupta mine rehab funds
IN ANOTHER banking blow for the Gupta family, the Organisation Undoing Tax Abuse (Outa) yesterday obtained an urgent interim interdict freezing R1.75 billion in the Gupta-owned Optimum and Koornfontein coal mines’ rehabilitation trust fund accounts.
The interdict was issued by the high court in Pretoria against the Bank of Baroda in the wake of the financial institution closing bank accounts of several Guptaowned companies by the end of this month.
The 20 companies last week lost an urgent bid for the bank to keep their accounts open, pending an application that was to be heard in December.
In light of the bank being given the green light to close the accounts, Outa feared that the rehabilitation funds may disappear.
“This is another victory for South Africa, with the prevention of Gupta mining trust accounts from leaving our shores or being plundered by the Guptas,” said Outa’s chief operating officer Ben Theron.
However, Theron warned that the fight was far from over because they wanted to ensure that the Gupta family and those responsible for state capture were held accountable.
Outa’s application was not opposed.
The interim court order directed the Bank of Baroda to continue to hold the trust funds in interest-bearing accounts in the trusts’ names.
The trustees were interdicted from directly or indirectly dealing, disposing or removing the money from the country.
The matter is expected to be back in court again on December 7.
Outa believed these trust funds represented more than 90% of the deposits held by the bank in South Africa.
Outa recently appealed to Minister of Mineral Resources Mosebenzi Zwane and the SA Reserve Bank to secure these funds, but said it had not received any response.
Julius Kleynhans, Outa’s portfolio manager for water and environment, said the funds were meant to rehabilitate environmental damage in and around the collieries.
The Mineral and Petroleum Resources Development Act and the National Environmental Management Act dictate that the funds in mine rehabilitation trusts cannot be used for purposes other than managing the environmental damage caused by mining activities.