Johannesburg – The High Court in Johannesburg has convicted Gupta-linked company directors Ronica Ragavan and Pushpaveni Ugeshni Govender of fraud and money laundering involving R107.5 million linked to two mine rehabilitation trusts.
The company directors were convicted alongside three mining companies – Optimum Coal Mine (Pty) Ltd, Koornfontein Mines (Pty) Ltd and Tegeta Exploration and Resources (Pty) Ltd.
Tegeta Exploration and Resources (Pty) Ltd was the Gupta family’s mining company.
Through Tegeta, the Guptas acquired and controlled Optimum Coal Mine (Pty) Ltd and Koornfontein Mines (Pty) Ltd.
The Guptas left South Africa under a cloud, and at least two of the brothers – Atul Gupta and Rajesh Gupta – remain wanted for state capture-related crimes.
To secure the conviction, the state proved that the money held in trust, as the law requires, to repair environmental damage at the Optimum and Koornfontein coal mines in Mpumalanga was unlawfully utilised to pay mining contractors and other third parties.
On Friday, 9 October 2026, Judge Mudunwazi Makamu convicted the accused on four counts as follows:
- Count 1, fraud (R7.5 million, Optimum Mine Rehabilitation Trust): Ragavan, Govender, Optimum Coal Mine and Tegeta were found guilty on this charge.
- Count 4, money laundering (R7.5 million), in contravention of section 4 of the Prevention of Organised Crime Act 121 of 1998: Ragavan, Govender, Optimum Coal Mine and Tegeta were found guilty on this charge.
- Count 5, fraud (R100 million, Koornfontein Rehabilitation Trust): Ragavan, Govender, Koornfontein Mines and Tegeta were found guilty on this charge.
- Count 8, money laundering (R100 million), in contravention of section 4 of the Prevention of Organised Crime Act: Ragavan, Govender, Koornfontein Mines and Tegeta were found guilty on this charge.
Ragavan was a director of Koornfontein Mines and Tegeta when the offences were committed, and Govender was a director of Optimum Coal Mine and, from 26 April 2016, was a trustee of both rehabilitation trusts.
Investigating Directorate Against Corruption’s (IDAC) Spokesperson Henry Mamothame said all the accused had pleaded not guilty.
“The offences committed went against set regulations for holders of mining rights to set aside money to rehabilitate the land they mine,” explained Mamothame.
“The National Environmental Management Act 107 of 1998 and its financial provision regulations require that this money be kept available for that purpose alone.”
During trial, the state highlighted that Tegeta bought Optimum Coal Mine and Koornfontein Mines from Glencore, and the sale was implemented on 08 April 2016.
With the mines came control of their two rehabilitation trusts.
On 1 February 2016, the trusts held about R1.44 billion (Optimum) and R278.5 million (Koornfontein).
Regarding Optimum Mine Rehabilitation Trust, it emerged that on 23 May 2016, R7.5 million was transferred from the trust’s Standard Bank account to an Optimum Coal Mine account.
Ragavan and Govender signed the letter asking the bank to make the transfer.
The State’s case was that the bank was falsely informed that the transfer was authorised and the money was for rehabilitation work.
On the same day, R7.5 million was combined with R9.5 million from Tegeta, which ultimately formed part of a R26.4 million payment to a contractor, Klipbank Mining, for underground mining done in April 2016.
It was established that rehabilitation work was done with the funds, and it was never repaid to the trust.
In relation to the Koornfontein Rehabilitation Trust, the state highlighted to the court that in May 2016 the trust’s R280 million was moved from First National Bank to the Bank of Baroda.
On 05 May 2016, the Department of Mineral Resources granted Tegeta approval in principle to utilise the trust funds for concurrent rehabilitation, subject to three conditions.
The version of the letter handed to the Bank of Baroda did not contain the conditions.
Subsequently, on 6 June 2016, R170 million of the trust’s funds was placed in a fixed deposit and pledged as security for a R150 million loan facility to Koornfontein Mines.
The bank received written undertakings that the loan would be utilised only to rehabilitate the mine.
The bank paid out R100 million on 13 June 2016, and within a period of two days, the money had moved through Koornfontein Mines and Tegeta accounts to a Tegeta account at the State Bank of India.
An amount of R67.8 million was subsequently paid to two mining contractors, Klipbank Mining and Coalcor Mining.
A further R30 million was sent back to the Bank of Baroda and paid on to other companies, including Koornfontein Mines and Optimum Coal Mine.
“It was discovered that none of the R100 million was utilsed for rehabilitation, and no rehabilitation work was done at Koornfontein,”’ Mamothame said.
The trust’s R170 million stayed pledged to the bank, and at risk, for a year.
The matter was postponed to 1 December 2026 for sentencing proceedings, and the court extended bail for Ragavan and Govender until the matter is finalised.
The National Director of Public Prosecutions, Advocate Andy Mothibi, together with the IDAC Acting Investigating Director, Advocate Ntuthuzelo Vanara, welcomed the conviction of two company directors and three mining companies.
“Rehabilitation trusts exist to ensure that surrounding communities are not left to carry the cost of the damage mining leaves behind,” Advocate Mothibi stated.
“We commend the prosecution and investigation team for securing such a crucial conviction.
“We remain committed in the fight against corruption.”
