By BAKANG MOKOTO
13 October 2026 – Two company directors and three mining companies linked to the Gupta family have been convicted of fraud and money laundering involving R107.5 million in funds intended for the rehabilitation of two coal mines in Mpumalanga. The Gauteng High Court sitting in Johannesburg convicted Ronica Ragavan, Pushpaveni Ugeshni Govender, Optimum Coal Mine (Pty) Ltd, Koornfontein Mines (Pty) Ltd and Tegeta Exploration and Resources (Pty) Ltd on four counts relating to the unlawful use of mine rehabilitation funds.
Investigating Directorate Against Corruption (IDAC) spokesperson Henry Mamothame said the convictions followed a case in which the state demonstrated that money held in rehabilitation trusts was allegedly diverted to pay mining contractors and other third parties instead of being used for its legally prescribed purpose. Mamothame said National Director of Public Prosecutions Advocate Andy Mothibi and IDAC Acting Investigating Director Advocate Ntuthuzelo Vanara welcomed the judgment.
“The court, presided over by Judge Mudunwazi Makamu, convicted the accused on four counts involving R7.5 million from the Optimum Mine Rehabilitation Trust and R100 million from the Koornfontein Rehabilitation Trust.
“On the first count of fraud involving R7.5 million, Ragavan, Govender, Optimum Coal Mine and Tegeta were found guilty. The same accused were convicted on the corresponding money laundering charge under Section 4 of the Prevention of Organised Crime Act 121 of 1998,” he said.
Mamothame further said on the fraud charge involving R100 million from the Koornfontein Rehabilitation Trust, Ragavan, Govender, Koornfontein Mines and Tegeta were convicted. He added that the same four accused were also found guilty of money laundering relating to that amount.
“Ragavan was a director of Koornfontein Mines and Tegeta when the offences were committed, while Govender was a director of Optimum Coal Mine and became a trustee of both rehabilitation trusts on 26 April 2016. All the accused had pleaded not guilty.
“However, the court found former deputy director-general of the then Department of Mineral Resources, Maleatlana Joel Raphela, not guilty on all charges against him,” said Mamothame.
He said the offences violated regulations requiring mining rights holders to set aside funds for rehabilitating land affected by mining activities. Mamothame said the National Environmental Management Act 107 of 1998 and its financial provision regulations require such funds to remain available for environmental rehabilitation.
“During the trial, the state presented evidence that Tegeta acquired Optimum Coal Mine and Koornfontein Mines from Glencore in a transaction implemented on 8 April 2016. The acquisition also gave Tegeta control of the mines’ rehabilitation trusts.
“As of 1 February 2016, the Optimum Mine Rehabilitation Trust held approximately R1.44 billion, while the Koornfontein Rehabilitation Trust held about R278.5 million. In the Optimum matter, the court heard that R7.5 million was transferred from the trust’s Standard Bank account to an Optimum Coal Mine account on 23 May 2016,” he said.
Mamothame said Ragavan and Govender had signed a letter requesting the transfer. He said the state argued that the bank was falsely informed that the transaction was authorised and that the money would be used for rehabilitation work.
“On the same day, the R7.5 million was combined with R9.5 million from Tegeta and ultimately formed part of a R26.4 million payment to Klipbank Mining for underground mining work carried out in April 2016.
“Although rehabilitation work was undertaken using the funds, the money was never repaid to the trust. In the Koornfontein matter, the State presented evidence that approximately R280 million held by the rehabilitation trust was transferred from First National Bank to the Bank of Baroda in May 2016,” said Mamothame.
He said on 5 May 2016, the Department of Mineral Resources granted Tegeta approval in principle to use the trust funds for concurrent rehabilitation, subject to three conditions. Mamothame said however, the version of the approval letter presented to the Bank of Baroda did not contain those conditions.
He said on 6 June 2016, R170 million from the trust was placed in a fixed deposit and pledged as security for a R150 million loan facility granted to Koornfontein Mines. Mamothame said the bank was given written undertakings that the loan would be used exclusively for mine rehabilitation.
“The bank subsequently paid out R100 million on 13 June 2016. Within two days, the funds had moved through Koornfontein Mines and Tegeta accounts before reaching a Tegeta account at the State Bank of India.
“Of the amount, R67.8 million was paid to mining contractors Klipbank Mining and Coalcor Mining. A further R30 million was transferred back to the Bank of Baroda and subsequently paid to other companies, including Koornfontein Mines and Optimum Coal Mine,” he said.
Mamothame said the state established that none of the R100 million was used for rehabilitation and that no rehabilitation work was undertaken at Koornfontein. He said the trust’s R170 million remained pledged to the bank as security for a year, leaving the funds at risk.
Welcoming the convictions, Mothibi emphasised the importance of protecting communities from the environmental and financial consequences of mining activities.
“Rehabilitation trusts exist to ensure that surrounding communities are not left to carry the cost of the damage mining leaves behind. We commend the prosecution and investigation team for securing such a crucial conviction. We remain committed in the fight against corruption.
“The matter was postponed to 1 December 2026 for sentencing proceedings. The court also extended bail for Ragavan and Govender until the case is finalised,” he said.
