‘Gupta’ is a swear word in Middelburg after the brothers leave mines in the lurch

Several big companies in Middelburg are sitting with millions in debt after Optimum and Koornfontein mines were taken over by the Gupta family, Middelburg Observer reports.

The Guptas and their bodyguards were often seen dining in Middelburg restaurants.

READ MORE: Global Gupta asset seizure in progress

But now, many stakeholders, most notably engineering companies, are sitting with debt after work done by them on the Optimum and Koornfontein mines were never paid.

Optimum mine.

Musketeer Engineering is owed R8 million.

Midcon Engineering had to write off R200 000 after Optimum was placed under business rescue the first time.

Both GK Steel and QR Steelworks are also owed substantial amounts.

According to John Stewart from Rubgen Engineering & Mining Supplies, they are also owed money, and hope is dwindling that it will ever be paid.

Jan Greeff from Rhojan Construction says Optimum owes him “more than they owe Musketeer Engineering”, but he is still hopeful that the money will be paid eventually.

Optimum and Koornfontein mines can no longer guarantee employment security.

This is the second time that both Optimum and Koornfontein mines are placed under business rescue. The fact that the Burg Group took over the mines’ management and has provided banking facilities, is a shard of hope to creditors.

The companies that money is owed to are:

• Barlow Equipment – R2.7 million
• Barlow Toyota R2 million.
• Close Up Mining – R8.7 million.
• Jef Drill & Blast – R5,8 million.
• Midvaal Motor Engineering – R800 000.
• Musketeer Engineering after the estimated R4 million budgeted for payment – R4.9 million.
• OH Frewin Printers R5 400.
• Okusha Engineering R313 000.
• Pencox Auto Air – R1.3 million.
• Rhojan Construction – R10.5 million.
• Rubgen Engineering R40 000.
• Weir Minerals – R257 000.
• Steve Tshwete Local Municipality – R108 000.
• Jormid Electrical – R70 000.

Koornfontein mine business rescue practitioner, Louis Klopper, confirmed the following debt owed by the mine:

• Auto Spares – R103 000.
• Bearing Services – R112 000.
• J&L Lining and Construction – R703 000.
• Kutting – R619 000.
• Midvaal Motor Engineering – R1 700.
• Musketeer Engineering – R570 000.
• OH Frewin Printers – R33 000.
• Sandvik – R900 000.
• Steve Tshwete Local Municipality – R280 000.

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