Gupta Lieutenant Accused Of Moving Optimum VAT Refund Funds To Suspicious Company

Ronica Ragavan is reportedly at the centre of the suspicious transfer of funds meant for Optimum to an unrelated third party company.
Eight suspects associated with the theft of R220-million from the Free State's Estina Dairy Farm project appear at the Bloemfontein Commercial Crimes court on February 15, 2018 in Bloemfontein, South Africa.
Eight suspects associated with the theft of R220-million from the Free State's Estina Dairy Farm project appear at the Bloemfontein Commercial Crimes court on February 15, 2018 in Bloemfontein, South Africa.
Foto24 via Getty Images

Ronice Ragavan, the CEO of the Gupta's Oakbay Resources, has been accused of diverting VAT refund funds claimed by Optimum Coal Mine to a suspicious, unrelated company. According to Times Select, business rescue practitioners for Optimum, which the Guptas also owned, claim that R89-million in VAT refund claims were diverted to In House Wages, a small company unrelated to the mine.

The practitioners reportedly claim that they were told that the funds were diverted "on the specific instructions" of Ragavan.

In House Wages' only director is reportedly Ashbir Maharaj, who was appointed two days after the Gupta businesses were placed under business rescue in February.

It has also been alleged that the R89-million was not the first, and that in total, it is estimated that R200-million was diverted to this small company in this way. The rescue practitioners reported obtained a court order in April to freeze In House Wages' bank account to stop the funds from being transferred elsewhere.

Maharaj reportedly denied being under Ragavan's instructions, and Ragavan did not immediately respond to the allegations.

Last month, TimesLive revealed that the payments were made to In House. This was reportedly the second time that a VAT refund was paid to a third party for the Guptas, in contravention of Sars policy.

The Daily Maverick reported in March that suspended Sars boss Tom Moyane was central to the approval of the Gupta VAT refund payouts, which ultimately totalled R70-million. This is one of the allegations against Moyane which saw President Cyril Ramaphosa suspend him this year.

But Sars and Moyane vehemently denied this. According to Fin24, Sars said in a statement that Moyane did not approve the payments, and laid the blame at the door of the legal department's head, Refiloe Mokoena, "which comprises experienced and well-respected tax experts".

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