Outa moves to rescue mines’ enviro funds

Ilse de Lange

The Organisation Undoing Tax Abuse (Outa) will take the India-based Bank of Baroda (BoB) to court to ensure the rehabilitation trust accounts of the Gupta-owned Optimum and Koornfontein coal mines, worth R1.75 billion, are frozen.

The move follows a ruling by the High Court in Pretoria yesterday allowing BoB to close the bank accounts of 20 companies in the Gupta group. They tried to stop the closure of their bank accounts pending further legal action, but the court would not allow it.

Outa said its application had been filed with the court and it expected it to be heard within the next few days.

The organisation said BoB was believed to have been the last bank in SA that had maintained accounts for the Guptas after others distanced themselves from their alleged illegal activities.

Outa’s chief operating officer Ben Theron said the organisation wanted to stop the mines’ funds from disappearing. “We want to ensure that this money doesn’t leave the country or find its way into the Gupta family’s pockets. We believe these trust funds represent more than 90% of the deposits held by the bank in SA.”

Julius Kleynhans, Outa’s portfolio manager for water and environment, said the funds were meant to rehabilitate environmental damage caused by mining activities.

“The purpose of a rehabilitation trust is to ensure that the area is rehabilitated and restored to such an extent that it is useful and safe for future generations to use.”

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.