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Optimum mine: Rescue practitioners explain their absence

Cape Town – Business rescue practitioners for the Gupta-linked Optimum coal mine have penned a letter to Parliament’s Portfolio Committee on Mineral Resources, explaining their absence.

The letter, using Optimum's letterhead and dated February 28 2018, confirmed that business rescue practitioners Louis Klopper and Kurt Knoop would not attend the committee's meeting that was held that day [Wednesday]. This after management was summoned to brief the committee on developments at the mine.

READ: REVEALED: More Gupta-owned companies apply for business rescue

Knoop and Klopper stated that they advised Parliament’s committee coordinator Ayanda Boss of their unavailability to attend the meeting and requested a date for the week of March 12 2018. They also claimed subsequent calls to the committee chairperson Sahlulele Luzipo went unanswered.

The letter informed the committee that they were unable to attend due to "legal challenges" that required their urgent attention.

Numerous creditors had launched liquidation proceedings against the mine, which compelled them to depose affidavits by midday on Wednesday. The business rescue practitioners previously indicated that all creditors would have been paid by Tuesday this week, using funds secured from other debtors’ payments, including prepayments on sales.

The letter stated that Klopper was briefing workers on the business rescue process. However, the National Union of Mineworkers, the majority union at the mine, was present at the committee meeting. Goodwill Mthombeni, NUM chairperson at the mine, raised the union’s doubts about the alleged sale of Tegeta Resources, Optimum’s holding company, to an unknown Gupta-linked Swedish company last year. 

Earlier this week, NUM members and workers downed tools at the mine, demanding answers from management about the mine’s future.

READ: 'We can't support our families' - anger mounts as workers at Gupta-owned coal mine down tools

Chairperson of the committee, Sahlulele Luzipo, confirmed to News24 that the committee was informed that neither the business rescue practitioners nor the previous mine management would attend.

He indicated, however, that the committee was not satisfied with the explanation given.

"History will judge us harshly if it finds we repeated the mistakes made with the Aurora mine. Our concern is that the workers must not be prejudiced, and the committee wanted assurances from the management of the mine."

READ: Aurora directors found guilty

Luzipo confirmed that the committee requested senior officials from the Department of Minerals and Resources to attend to the mine, and revert to the committee on 10 points of clarity by next week.

Eight Gupta-linked companies voluntarily entered business rescue proceedings last week, appointing Klopper and Knoop as the individuals responsible for overseeing the turnaround of the companies.

They would attempt to get the businesses back on their feet, essentially replacing the management of the mine until the process had run its course.

One of the companies that applied for business rescue is Islandsite Investments 180, which owns the Guptas’ Sahara Computers building in Midrand.

News24 found the building abandoned and mostly empty, with some offices still occupied with furniture and sports memorabilia.

READ: EXCLUSIVE: Guptas' Sahara Computers closed, abandoned

The applications for business rescue followed shortly after the Gupta family seemingly fled the country, around the same time the Hawks conducted a raid at their Saxonwold-home in Johannesburg.

This secured the appearance of several Gupta lieutenants in the Free State Magistrate’s court in mid-February.

Ashu Chawla, Ronica Ragavan and Varun Gupta were among the accused with close links to the Guptas that were granted bail in respect of the Estina dairy farm investigation.

The project was used to divert millions in state funds through shell companies to bankroll the Guptas’ controversial Waterkloof wedding in 2013.

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