President’s son got stake in Optimum mine purchaser

A COMPANY that is almost half-owned by President Jacob Zuma’s son‚ Duduzane‚ obtained shares in a firm founded by the Gupta family weeks before that company bought Glencore’s Optimum coal complex‚ share register documents show.

Tegeta Exploration and Resources‚ the company set up by the Guptas‚ agreed to pay R2.15-billion for the Optimum mine‚ which supplies Eskom‚ in a deal announced on December 11.

The purchase was announced three weeks after Duduzane took the stake in Tegeta.

The sequence of the transactions underscores complaints from Zuma’s political opponents that he‚ his family and allies have benefited financially during his seven years as president.

“It looks terrible‚” transparency group Corruption Watch executive director David Lewis said of the timing of the transaction.

“It goes to the capture of the state by business figures in connection with the political elite‚ right up to the president.”

Calls to Duduzane’s office and cellphone were not answered. Glencore officials declined to comment.

Representatives for the Guptas and the Department of Mineral Resources denied any impropriety.

A spokesman for the president, Bongani Majola, declined to comment. Zuma said as recently as January 10 that he was friends with the Guptas.

ANC secretary-general Gwede Mantashe has defended Duduzane’s right to pursue his business interests‚ saying last month that family members of politicians were entitled to a life of their own.

Mineral Resources Minister Mosebenzi Zwane said in a February 8 interview that he helped complete the deal for the Optimum coal mine when he flew to Switzerland to meet Glencore chief executive Ivan Glasenberg.

Zwane said that while he was not favouring Tegeta‚ he helped persuade Glencore to sell the operation‚ which was in bankruptcy protection‚ to try to save jobs.

On November 20‚ about half of the shares in Tegeta Exploration‚ the coal company until then controlled by the Gupta family and their employees‚ were transferred to Mabengela Investments‚ a company part-owned by Duduzane, and a company known as Elgasolve.

Oakbay Investments‚ a company owned by the Guptas‚ said Zwane did not influence the deal. Oakbay owns 34.5% of Tegeta Exploration.

“The ministry of mineral resources was in no way involved in the acquisition of Optimum,” it said.

Mabengela owned 28.5% of Tegeta‚ Elgasolve 21.5% and a Dubai-based company called Fidelity Enterprises owned 15.5%‚ Oakbay said.

It said it was not immediately able to confirm the date of the share transfers.