Mineral Resources and Energy Minister Gwede Mantashe
The department of mineral resources and energy has failed to file an application for leave to appeal a court order that interdicted Minister Gwede Mantashe and the department from granting the transfer of mining rights to a close family associate.
This despite Mantashe telling the Mail & Guardian that the department had filed an application to appeal the Pretoria high court judgment.
The M&G reported last week that Mantashe, his wife Nolwandle and others have been accused of using his position in the ministry in an attempt to coerce Sarel Victor — the man who partly owns the mining rights through a company named EMMCOO — to relinquish control of Kareepan mining rights in the Northern Cape.
Kareepan mine is one of the few mines responsible for the country’s manganese and ore exports.
For two weeks the department has failed to respond to repeated requests for comment on the matter.
Documents seen by the M&G show that against the advice of his chief director of legal services, Pieter Alberts, Mantashe flatly denied an appeal and handed over a manganese mining right to a company owned by Christiaan Arnoldus Victor and Khayalethu Wiseman Gqosha. Several sources have said Gqosha is close to the minister.
According to Alberts’ letter to Mantashe, dated 7 September 2021, a decision was made by the department’s director general to transfer the rights of Kareepan Mine from MF45 to MF111 on 29 January 2021.
On 5 November 2021, MF45 shareholders Sarel Victor along with Barnet Silver, who own EMMCOO, appealed the decision.
Alberts recommended that the appeal be upheld and the decision by the director general to transfer MF45 mining rights set aside.
Sarel Victor also approached the Pretoria high court to interdict the department from granting the transfer the rights to Kareepan Mine.
His application was approved by the courts on 14 September, interdicting the minerals and resources department director general from notarially executing any deed of cession in relation to the mining rights.
The courts also ruled that the department, along with Christian Victor, are interdicted from acting on behalf of the MF45 as power of attorney. No cost order was awarded.
According to the department’s records, Misty Falls 45 (MF45) was awarded a mining right in 2012. Christiaan Victor was a director at the time and was given the authorisation to act on behalf of the company. But company records show he resigned as a director in 2014.
In 2018, Christiaan Victor started a new company, Misty Falls 111 (MF111). One week later, on 21 November 2018, Gqosha was appointed a director. According to a lawyer’s letter written by a shareholder of MF45, Sarel Victor, Gqosha and Christiaan Victor then applied to have the mining rights ceded from MF45 to MF111.
In the letter dated 22 August sent to the department, Sarel Victor’s lawyers state that he met Nolwandle Mantashe and Gqosha on several occasions and that he would compile a substantive affidavit setting out the various meetings and interactions.
Sarel Victor is the son of Christiaan Victor, who is now being investigated by the Hawks for allegedly fraudulently misrepresenting himself to the department of minerals and energy as the 100% shareholder of MF45. He applied for the rights to be transferred to MF111, which he co-owns with Gqosha.
In an affidavit by Gqosha, dated July 2021, he states along with his business associate, Dumisa Ntsholo, that they entered into negotiations for a broad-based black economic empowerment partnership in 2017 with Christiaan Victor, because he was the 76% majority owner of MF45.
They established MF111 as a special purpose vehicle.
Gqosha states he was introduced to Sarel Victor and another MF45 shareholder, Barnet Silver, only in 2019 when they indicated they had an interest in Kareepan Mine.
Gqosha said Silver offered an initial R5-million for the mine, which would be owned by MF111. He added that he understood Christiaan Victor was the owner of MF45 and the rights.
In legal papers the M&G has seen, Silver explains that Christiaan Victor never had the right to cede the mining rights and has committed fraud.
Silver said shareholders of MF45 had been prejudiced and their interests deprived as a result of the transfer of the mining rights. The Kareepan mining area is vast and prospecting operations confirmed it is rich in ore and manganese, he said.
Silver’s affidavit, as well as the board’s confirmation of his position, pours cold water on claims made by Gqosha, who said that Silver did not own any shares in MF45.
Last week Mantashe denied any relation to Gqosha. He told the M&G that he could not respond to a matter that was before the court.
“I won’t be dragged into a parallel process. Don’t let them drag you into these issues of the department,” he said, adding that he could not comment further as the matter was sub judice. But neither the lawyers for Sarel Victor nor Silver have received any appeal from the department.
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