Guptas’ big mine heist

Brothers’ plundering leaves collieries short of safety gear, salaries — even office supplies

● They were given no overalls, hard hats or boots, and told to go easy on the milk.

A strike by angry workers at four Gupta-owned mines this week exposed how the notorious brothers used their lucrative mines as massive cash cows to strip out money — thereby endangering the lives of their workers.

The condition of the mines in Mpumalanga and North West — controversially bought with a R590-million “pre-payment” from Eskom — has come to light after the plight of the workers was highlighted during strikes over late payment of salaries last week.

Workers were supposed to have been paid last Friday, but some were only paid on Tuesday and others as late as this Friday morning. This resulted in many workers’ debit orders being dishonoured, bringing extra bank charges. In some cases workers had to pay rent late.

The Guptas cut corners while raking in money through lucrative coal-supply agreements with Eskom and export deals with Richards Bay Coal Terminal.

Optimum Coal, Koornfontein, Shiva Uranium and Brakfontein coal mine were placed under business rescue last week as the closure of Gupta accounts with the Bank of Baroda loomed after the bank announced its departure from South Africa.

Gupta family companies on Thursday asked the High Court in Pretoria to order Baroda to remain in South Africa. Judgment has been reserved until March 12.

Atul, Ajay and Tony Gupta, and Duduzane Zuma, former president Jacob Zuma’s son, are on the run from South African state-capture investigators.

The Sunday Times can reveal that despite denials from authorities, an arrest warrant has been issued for Atul and Tony. Insiders said the denial was part of a plot to lure the two brothers back into the country. Ajay is also wanted, in connection with the alleged attempted bribing of former deputy minister of finance Mcebisi Jonas.

At the mines, severe cost-cutting included not buying stationery, telling staff to drink less milk and sourcing “pirate” parts to fix essential earth-moving equipment.

At Optimum Coal mine in Mpumalanga, machinery has been stripped to fix other broken equipment.

“The machinery inside the mine is f***ed up. We have zero compared to when we started. They stripped a lot of it,” said a production supervisor who has been at Optimum for 15 years and did not want to be identified for fear of victimisation.

“I only had three rear dumpers instead of 13. We had six trucks instead of 13, two loaders instead of four and two or three excavators. The other machines are stripped to fix the others,” the supervisor said.

The supervisor said mineworkers had weathered the storm as various owners had come and gone, but conditions had gone from “better to worse” under the Guptas.

“We don’t even have ballpoint pens, for crying out loud. You have to buy it yourself. Safety equipment like overalls, it’s been two weeks we don’t have any of it. No hard hats or boots.”

The supervisor explained that even as safety equipment ran out and workers had to share gear among themselves, there was constant pressure to continue meeting production targets. Supervisors were told to stop making excuses.

Said another supervisor: “It got to a point where it was emotionally affecting you. The workers I supervise come to me to ask for food, or when they will be paid. Some days I make extra lunch and bring it to work, to feed them.

“I am overstretching myself as a leader, struggling to make ends meet so that we can work. You are monitored daily on production on what you deliver, but they are not helping you.

“And if you say we cannot do this or that, you are told you are making excuses.”

At Brakfontein mine near Delmas on Tuesday morning the entrance was blocked with burning tyres. A group of around 50 workers had gathered outside the gate.

They are refusing to go back to work until the mine agrees to salary increases. They want R12 500 a month, as opposed to the R5 000 some earn, as revealed by payslips the Sunday Times was shown.

A group of workers, who also wished to remain anonymous, revealed that some general workers at the mine were paid R3 000 a month and supervisors only R8 500.

They told of how machines were repaired with “Chinese parts”, which resulted in them breaking constantly, posing a safety hazard.

There is also no fresh water to drink on the mine, according to the workers.

There is a borehole, “but we cannot drink from it. We were warned there is acid in that

water,” they said.

“No one is taking us into consideration.” On Thursday Shiva Uranium was deserted but for a few workers leaving early and security guards at the gate. The mine had been shut down as no one had been paid. None of the workers approached wished to be interviewed.

At Koornfontein, which the Department of Mineral Resources found had breached its mining licence last month, the mine continued production on Wednesday, after workers were paid on Tuesday. Last week sister newspaper the Sowetan reported that workers were kitted out in worn-out gumboots and overalls and sent underground, where they have to walk through puddles of acid mine water.

One source close to the companies said it would take months to determine how much cash has been stripped out of the mines by the Guptas.

The source said business rescue practitioners Louis Klopper and Kurt Knoop “have their work cut out for them. I think when people finally understand how much cash has been stripped from these businesses . . . people will be very surprised”.

The nearly 3 000 workers employed at the four mines, however, have new hope that the Guptas “are gone” and that the business rescue process can save the mines, and their livelihoods.

The Sunday Times understands that some suppliers of diesel, explosives and personal protection equipment such as boots, gloves and overalls have not been paid since November, which has led to some suppliers refusing to provide services to the mines.

Klopper said that a meeting with all creditors would take place next week to discuss outstanding payments. He confirmed late on Friday that all four mines would be back up and running by yesterday morning.

On Thursday he denied that any of the mines or businesses under business rescue, particularly Optimum, were facing liquidation.

Having spent the week travelling to the various mines speaking to the workers, Klopper said the condition of the equipment was a direct result of the banking problems faced by the Gupta companies.

“The condition of the equipment at Optimum is no worse than any other mine,” he said. “This equipment takes a hammering. Any lack of maintenance . . . is a ripple effect [as a result of] the ineffective banking system currently in place.”

Klopper said Eskom refused to pay Optimum at the end of January for coal supplied, saying the mine owed R105-million for a fine levelled for the short supply of coal.

This, he said, also had a massive knockon effect on mining operations.

“We have had to rob Peter to pay Paul, which is wrong because now the other businesses are suffering,” Klopper said.

But he was hopeful that new banking facilities would be made available soon.

“If we, the business rescue practitioners, cannot get new transactional banking facilities in place before March 30, all of this is irrelevant. But I am optimistic that we should have resolved this problem by early next week.”