The national director of public prosecutions (NDPP) believes that if their preservation application aimed at seizing a Gupta-owned coal mine in Mpumalanga is not granted the mine would fall into the hands of a businessman with a “pedigree of State Capture.”
The high court in Pretoria is hearing two matters which relate to NPA’s Investigative Directorate’s application in which it seeks to get the most significant remaining asset of the Gupta family to be forfeited to the state.
Arguing on behalf of the NDPP, Adv Matthew Chaskalson argued that the manner the Optimum Coal Mine, south of Middelburg, was purchased gave rise to the State Capture Commission of Inquiry and that it was clearly proceeds of crime, corruption and money laundering.
Chaskalson stated that businessman Daniel McGowan, a former business associate of the Gupta family, who stands to take over the mine from the business rescue practitioners (BRPs) had a “full pedigree of state capture”.
“The BRPs want this court to back off so that they can give him (McGowan) a R2.4bn asset that was one of the assets that was the primary target of the original state capture crimes,” stated Chaskalson.
McGowan played a role during the Gupta family's acquisition of the Optimum Mine through another company allegedly whose funds were used to help buy the mine.
Chaskalson said the mine was acquired with funds looted from the state which was channelled through money-laundering actions which involved banks and other Gupta-associated companies and later brought back to acquire the coal mine in 2015.
He said McGowan also stood to benefit from getting the entire business of Optimum Coal Mine's coal business for R1.
“That's a business which is impossible to value because coal prices as we speak are hitting record highs in the wake of the Russian/Ukraine crisis,” Chaskalson stated.
Chaskalson said McGowan was aware that the Guptas received unlawful proceeds as he had been working with the Guptas since 2013 and had also advised them on the Free State diary project.
“In 2014, Mr McGowan helped the Guptas to buy a property for Duduzane Zuma in Dubai,” he said.
Chaskalson also cited an affidavit by McGowan disposed in 2020 in which he had admitted to a court in Bermuda (a British territory in North Atlantic Ocean) that money advanced to Optimum by the Gupta family amounted to proceeds of unlawful activities.
The Investigative Directorate is relying on a piece of legislation which allows for something acquired with proceeds of crime to be forfeited to the state.
Chaskalson is arguing that there's evidence which shows that the mine was acquired through the Gupta family's looting of Eskom and Transet and used the money to acquire the Mpumalanga mine which also enjoys export deals on top of supplying Eskom with coal.
The case continues.
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