Minister’s link to Guptas grows deeper

Three months after being named as mines minister, Mosebenzi Zwane helped the Gupta family acquire Glencore’s Optimum colliery.

Johannesburg - Three months after he was appointed mines minister, Mosebenzi Zwane helped the Gupta family acquire Glencore’s Optimum colliery.

Now it has emerged that his political adviser has a business connection with the family, who are friends of President Jacob Zuma.

After Zuma promoted Zwane from provincial politics to run the Department of Mineral Resources in September, Malcolm Mabaso became his political adviser. Mabaso and Salim Essa, a business partner of the Guptas, are both directors of a company called Premium Security and Cleaning Services, according to publicly available company filings.

Read: Gupta-Zuma firm eyes coal export rights

Essa is a director at a company called VR Laser Services, in which the Gupta family investment vehicle holds a minority stake.

Last month, VR Laser entered a partnership with defence company Denel to market its products in Asia, Gupta family spokesman Gary Naidoo said early this month.

The Guptas’ alleged influence in shaping policy in Zuma’s administration has drawn criticism from the opposition and expressions of concern from within the ANC.

Business empire

At least one of the brothers is a director in at least a dozen firms along with Zuma’s son, Duduzane, according to public documents, and has employed one of his wives.

The family, led by brothers Atul, Ajay and Rajesh, came to South Africa from India in 1993 and built a business group ranging from computers to uranium mining.

“There’s absolutely no doubt that here you have a situation of patronage that gives advantage to those who are politically connected,” Somadoda Fikeni, a political analyst and professor at Unisa, said. “Even ANC leaders are starting to raise this issue.”

Zwane said he encouraged the Optimum Coal acquisition in the hope of saving jobs. He said he flew to Switzerland and met Glencore chief executive Ivan Glasenberg, with whom he discussed the deal.

“I took credit, because I said, ‘Engage’,” Zwane said.

“‘Let’s save jobs. You have a profit mentality, but jobs are at stake here’.”

Mabaso declined to comment. Essa was not available for comment. Zwane’s spokesman, Martin Madlala, said he would only respond to emailed questions.

Oakbay Investments, a company owned by the Guptas, said Zwane did not influence the deal. It said in an emailed response to questions: “Like many businesses with mining interests in South Africa, we are familiar with Minister Zwane and Mr Mabaso, but we have no material relationship beyond that.”

Tegeta Exploration & Resources, a company in which the Guptas and Duduzane have a stake, agreed to buy Optimum for R2.15 billion in December, days after Zwane flew to Switzerland.

If successful, Tegeta will operate two more mines and will be supplying nearly 5 percent of Eskom’s roughly 120 million tons of coal.

The company will also gain access to Africa’s biggest coal terminal so it can export the fuel.

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