Court freezes billions in funds from Gupta-owned mines
The Gupta’s may be rather alarmed when they realise they can’t touch the billions of rands in their Baroda bank account. OUTA went to the courts and won.
Anti-corruption group the Organisation Undoing Tax Abuse (OUTA) has on Tuesday won an urgent interim interdict to freeze just under R2 billion in mine rehabilitation funds from two Gupta-owned coal mines.
The North Gauteng High Court sided with Outa even though their action was not opposed.
Last week, the Guptas lost an interdict seeking to compel the Bank of Baroda to keep allowing the family or their companies to bank with them. The bank then said that it would close the accounts of 20 Gupta-affiliated companies, including two coal mines, by the end of September. With Baroda taking a stance, it was unclear what would happen to the funds.
“The interim order directs the Bank of Baroda to continue to hold the trust funds of the Optimum Mine Rehabilitation Trust and the Koornfontein Mine Rehabilitation Trust in interest-bearing accounts in the trusts’ names,” said OUTA in a statement.
Trustees of the two mine rehabilitation trusts have been interdicted from “directly or indirectly dealing in any way” with the funds. The stipulation includes removing them from South Africa.
On the 7th of December, the court will hear the matter of what will happen to the funds and what power the court has to move them.
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