Mineral Resources Minister Mosebenzi Zwane has said in Parliament that he could not answer a parliamentary question about why he agreed to the transfer of funds from the Optimum Mine Rehabilitation Trust.
Replying in writing to a question dated October 21 by Congress of the People MP Deidre Carter‚ Zwane said he was constrained from providing details as the question was the subject of legal proceedings.
Department of Mineral Resources spokesperson Ayanda Shezi said the court case referred to was “relates to the court application by the Finance Minister” but did not explain which case this was.
The minister’s reply adds further information about the intrigue behind the attempt by Gupta-owned Tegeta Exploration and Resources to access the rehabilitation funds of the Optimum and Koornfontein mines worth a total of R1.75 billion or R280 million and R1.5 billion respectivley.
These funds are ring-fenced and can only be used for environmental rehabilitation when a mine stops operating and closes down.
Former Public Protector Thuli Madonsela said in her state capture report released last week that it appeared that the Bank of Baroda — which has been the conduit for Gupta financial dealings — was handling the rehabilitation funds in contravention of the National Environmental Management Act and regulations‚ which require that the funds have to equal to the cost of the rehabilitation.
“This cannot be guaranteed by the Bank of Baroda or Tegeta as the funds are consistently moved around between accounts as well as other branches‚” the report said.
The bank did not reinvest the interest accumulated in both rehabilitation funds for capital growth as required but transferred it back to the main account at the bank. The report calculated that the combined value of the interest earned off of these funds at 7% was approximately R122.5 million per year.
Investigative journalism unit‚ Amabhungane‚ reported recently that it took Zwane’s department barely 24 hours to approve Tegeta’s request to access the funds in the Koornfontein fund.
AmaBhungane claimed to have seen documents confirming that the department had given Tegeta permission to access the fund. The report said Tegeta justified its application to the department to use the trust funds on the grounds that the closure of the Guptas’ bank accounts meant that they urgently needed to start rehabilitation work on the mine.
Madonsela’s report also showed that Zwane had close ties with the Guptas.
Zwane refuses to answer parliamentary questions about controversial mine fund transfer
Mineral Resources Minister Mosebenzi Zwane has said in Parliament that he could not answer a parliamentary question about why he agreed to the transfer of funds from the Optimum Mine Rehabilitation Trust.
Replying in writing to a question dated October 21 by Congress of the People MP Deidre Carter‚ Zwane said he was constrained from providing details as the question was the subject of legal proceedings.
Department of Mineral Resources spokesperson Ayanda Shezi said the court case referred to was “relates to the court application by the Finance Minister” but did not explain which case this was.
The minister’s reply adds further information about the intrigue behind the attempt by Gupta-owned Tegeta Exploration and Resources to access the rehabilitation funds of the Optimum and Koornfontein mines worth a total of R1.75 billion or R280 million and R1.5 billion respectivley.
These funds are ring-fenced and can only be used for environmental rehabilitation when a mine stops operating and closes down.
Former Public Protector Thuli Madonsela said in her state capture report released last week that it appeared that the Bank of Baroda — which has been the conduit for Gupta financial dealings — was handling the rehabilitation funds in contravention of the National Environmental Management Act and regulations‚ which require that the funds have to equal to the cost of the rehabilitation.
“This cannot be guaranteed by the Bank of Baroda or Tegeta as the funds are consistently moved around between accounts as well as other branches‚” the report said.
The bank did not reinvest the interest accumulated in both rehabilitation funds for capital growth as required but transferred it back to the main account at the bank. The report calculated that the combined value of the interest earned off of these funds at 7% was approximately R122.5 million per year.
Investigative journalism unit‚ Amabhungane‚ reported recently that it took Zwane’s department barely 24 hours to approve Tegeta’s request to access the funds in the Koornfontein fund.
AmaBhungane claimed to have seen documents confirming that the department had given Tegeta permission to access the fund. The report said Tegeta justified its application to the department to use the trust funds on the grounds that the closure of the Guptas’ bank accounts meant that they urgently needed to start rehabilitation work on the mine.
Madonsela’s report also showed that Zwane had close ties with the Guptas.
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