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In a significant victory in the fight against illicit coal mining, South Africa’s Asset Forfeiture Unit (AFU) has seized R52.5 million from 10 Namibian bank accounts. This operation, a collaborative effort between South Africa’s Financial Intelligence Centre (SA-FIC), the Namibian Financial Intelligence Centre (Nam-FIC), and the Namibian Prosecutor-General’s office, represents a crucial step in both countries’ efforts to combat money laundering and exit the Financial Action Task Force (FATF) “greylisting.”
The seized funds are linked to alleged large-scale illegal coal mining operations in the Carolina area of Mpumalanga, a region plagued by this illicit activity. The operation targeted Jacobus Hosea Jordaan and his wife Elza, key figures in the case, whose trial is set to begin in the Mbombela High Court in November 2025. They face charges related not only to illegal mining but also money laundering and environmental crimes.
This seizure is just the tip of the iceberg, however. The NPA estimates that the total financial benefit derived from illegal coal mining and related offenses in Mpumalanga could reach a staggering R2 billion. Investigations into these activities, which have been ongoing since 2023, have already resulted in the seizure of a farm, vast stockpiles of coal, heavy mining machinery, and numerous vehicles in the Carolina district.
The scale of the illegal coal mining operations in Mpumalanga is striking, and the equipment used, including large “yellow machines,” cannot easily be concealed. This suggests a level of brazenness and potential complicity that raises serious questions.
The timing of this seizure is particularly significant. Both Namibia and South Africa were greylisted by the FATF for deficiencies in their anti-money laundering frameworks. A key condition for South Africa’s removal from the greylist was demonstrating a sustained increase in investigations and prosecutions of complex money laundering cases, particularly those involving professional networks. The deadline for fulfilling this condition was this month, January 2025. This successful operation against illegal coal mining, with its cross-border implications, directly addresses this requirement.
The NPA’s statement explicitly acknowledged the link between the seizure and the FATF greylisting, noting that the Namibian seizure orders would “assist enormously” in getting both countries off the list. This operation underscores the importance of international cooperation in combating financial crimes.
The timing also aligns with changes implemented last year regarding cross-border transactions within the Common Monetary Area (CMA), which includes Eswatini, Lesotho, Namibia, and South Africa. Previously treated as domestic payments, low-value electronic fund transfers (EFTs) between CMA countries are now subject to enhanced scrutiny to prevent money laundering. While it’s unclear if this particular operation involved such transfers, the timing underscores the focus on closing potential loopholes.
The success of this operation offers a potential blueprint for tackling other forms of illicit resource extraction, particularly illegal gold mining. The focus on targeting the masterminds behind these operations, rather than just the exploited miners, is a welcome shift.
The investigations in Mpumalanga have also raised concerns about potential corruption within the Department of Mineral and Petroleum Resources, specifically regarding the issuance of numerous “mining permits” for small-scale open-pit operations. The ease with which these permits are allegedly obtained has fueled suspicions that they are being used to facilitate larger, illegal mining activities.
While challenges remain, the AFU’s recent success in Mpumalanga represents a significant step forward in the fight against illegal coal mining and transnational crime. It also provides a much-needed boost to South Africa’s efforts to regain its standing in the global financial system.
