Gupta’s Optimum Coal Mine seeks rescue as future looks gloomy

Africa’s most industrialized economy power provider Eskom says Optimum coal mine has started taking measures to restructure its affairs, as investigations on the state-owned Gupta scandal heightens.

Confirming this on Thursday in a Reuters report, South Africa’s sole power provider Eskom stated that its Hendrina Power Station supplier, Optimum begun business rescue proceedings as at Monday, though further details on the rescue proceedings were not given.

Few days ago, members of the National Union of Mineworkers (NUM) came out in hundreds to express their concerns over the operation’s viability at Optimum mine.

Owned by the Gupta family involved in one of the biggest scandal to hit the South African country, the Optimum coal mine is seeking to ensure it does not get dragged down by the ongoing Gupta family investigations.

South Africa’s wealthy Gupta family has been at the center of the country’s corruption investigations with the accusation of using their friendship with President Jacob Zuma to win government contracts, of which they denied wrongdoing.

Recently, the head of South Africa-based Sygnia Asset Management, Magda Wierzycka and Forensics for Justice (FFJ) announced a one million rand ($85,192) bounty for information leading to the whereabouts and arrest of the Guptas and Jacob Zuma’s son, Duduzane Zuma.

Several banking institutions have ended all relationships with the Guptas, including the India’s Bank of Baroda and main commercial banks in South Africa, for the fear of risking their reputations.

Global firms to have faced problems due to their work for the Gupta brothers include KMPG S.A, Mckinsey and public relations agency Bell Pottinger. The firms have lost clients since investigation revealed their involvement in the Gupta’s financial scandal.