Two company directors and three Gupta-linked mining companies have been convicted of fraud and money laundering involving R107.5 million meant for mine rehabilitation.
The National Prosecuting Authority (NPA) confirmed that the Gauteng High Court in Johannesburg convicted Ronica Ragavan, Pushpaveni Ugeshni Govender, Optimum Coal Mine, Koornfontein Mines and Tegeta Exploration and Resources.
The money came from rehabilitation trusts linked to the Optimum and Koornfontein coal mines in Mpumalanga.
R107.5m Linked to Two Trusts
According to the NPA, Ragavan, Govender, Optimum Coal Mine and Tegeta were convicted of fraud and money laundering involving R7.5 million from the Optimum Mine Rehabilitation Trust.
Ragavan, Govender, Koornfontein Mines and Tegeta were also convicted of fraud and money laundering involving R100 million from the Koornfontein Rehabilitation Trust.
The NPA said the funds were required by law to remain available for repairing environmental damage caused by mining.
The State argued that money from the trusts was unlawfully used for mining contractors and other purposes instead.
Rehabilitation Money Diverted
The court heard that Tegeta acquired Optimum and Koornfontein from Glencore in April 2016, gaining control of their rehabilitation trusts.
The NPA said the Optimum trust held about R1.44 billion in February 2016, while the Koornfontein trust held R278.5 million.
In the Koornfontein matter, R100 million moved through company accounts after part of the trust was pledged as security for a loan.
The State established that none of that R100 million was used for rehabilitation work.
Sentencing Set for December
Former mineral resources deputy director-general Maleatlana Joel Raphela was acquitted on all charges, according to the NPA.
The Centre for Environmental Rights has warned that failures to protect rehabilitation funds can leave communities facing polluted water, unsafe land and other long-term environmental risks.
The NPA said the matter has been postponed to 1 December 2026 for sentencing.
Ragavan and Govender remain on bail until the case is finalised.