Gupta empire crumbles as family-owned companies apply for liquidation

The most recent development in the Gupta drama that has been ever-present in South African news sees one Gupta-owned company potentially putting another into liquidation.

Tegeta sprung into prominence when former Public Protector detailed Eskom’s involvement, allegedly at the behest of the Guptas in making the sale of the Optimum mines to Tegeta possible at the expense of Glencore.

Tegeta stopped trading during 2018 but owns shares in the Richard’s Bay Optimum Coal Terminal, as well as the Koornfontein Mines, and Shiva Uranium. Oakbay owns a 59% stake of Shiva Uranium, another mine under business rescue.

As reported by Baldwin Ndaba from The Star, Tegeta was also placed under business rescue, and practitioners handling the company are trying to recoup R4m from Oakbay.

Oakbay had no offices of their own and rented office space from Tegeta. The lease and service agreement between the two companies was for R150 000 per month with a 10% annual increase.

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Unable to pay bills

Robert Knoop, a business rescue practitioner, said that Oakbay is indebted to Tegeta to the sum of R1.3m for rent and services rendered during June 2018 and January 2019. Knoop went on:

“Oakbay is therefore further indebted to Tegeta in the sum of R2 416 554.90 in respect of the escalated portion of monthly fee payable in terms of the agreement.”

The company has no listed address, and the Sherrif has been unable to serve the notice for their liquidation filed in the high court on the company. In terms of the notice, the company has 15 days to oppose the liquidation application. Knoop added:

“I have also been advised that Oakbay is deemed unable to pay its debt as contemplated in terms of the company laws of the Republic of South Africa and is liable to be wound up.”

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