We need to know if the Optimum rehabilitation fund has been raided 

17 October 2016

Revelations that Gupta-owned companies were given permission by the Department of Mineral Resources (DMR) to transfer money from the rehabilitation fund for the Optimum colliery need to be clarified. 

In his court notice of motion, Finance Minister Pravin Gordhan makes reference to one “suspicious transaction” being the transfer of R1.3 billion in funds from the rehabilitation fund held in trust at Standard Bank to Baroda Bank. He says he is not aware whether the transfer has taken place or whether the Reserve Bank accepts Baroda as a suitable lodging place for such a fund. 

A number of questions need to be answered: 

- Did the transaction take place?

- Does the reserve Bank consider Baroda Bank a suitable place to deposit rehabilitation trust funds?

- Is the intended deposit to Baroda a simple transfer of the trust funds or has the DMR given permission for funds to be taken out of the rehabilitation trust for alternative use?

- If that is the case, SARS would have needed to have given its approval. If it did, we need to know whether it did and how, when and why?

During November 2015, the National Environmental Management Act regulations changed to ban all withdrawals from rehabilitation trusts. If this has taken place, these regulations have been contravened.

If the rehabilitation trust fund contained about R1.5 billion, and some R1.3 billion was looking to be transferred, where is the balance of the fund and why has the fund been divided? 

If the Optimum rehabilitation fund has been raided, it will have been done illegally. That money is intended for environmental rehabilitation of a major coal mine which has had a significant impact on the environment. If the money is not available for rehabilitation, the state will be left with a bill  for rehabilitation or rehabilitation work will not be done. 

We call on Mineral Resources Minister Mosebenzi Zwane to clarify the answers to all these questions. If he does not, it probably means he cannot and that there has been illegal behaviour by the Guptas and by him. 

I will request information from SARS as to whether or not they gave permission for the funds to be moved, and I will request to see copies of the relevant documentation. 

I will also submit written parliamentary questions to the Minister of Mineral Resources on other issues mentioned above. 

If Minister Zwane has nothing to hide, he will surely provide all the requested information swiftly. If he does not, it will cast even more suspicion on this entire situation. 

Issued by James Lorimer, DA Shadow Minister of Mineral Resources, 17 October 2016