Brett Kebble
Send this article to a friend
Print this page

» JCI to get fresh start
» Randgold/JCI audit may trigger legal action
» Tangled: JCI, Investec & Brett Kebble
» Kebble dethroned
» JCI, Randgold suspended by JSE

If you want to share this article, simply sign into one of these sites and select your network. It’s that easy Click here to find out more about how to use this button

R1.42bn stolen from Randgold & Exploration
Allan Seccombe
Posted: Tue, 13 Jun 2006

[miningmx.com] -- BRETT Kebble and some other directors at Randgold & Exploration misappropriated R1.421bn in assets and issued incorrect reports and statements totalling another R2.5bn, a forensic investigations shows.

The R1.42bn was made up by the illegal movement and sale of shares held by RG&E in London-listed Randgold Resources, DRDGOLD and the former Afrikander Lease.

“The forensic investigation indicates that material frauds were perpetrated by misappropriating investments in listed shares, or by listing new shares, issued for no value and then selling such shares and laundering the proceeds through a web of special purpose vehicles with trading and bank accounts,” the report said.
material frauds were perpetrated
“It is alleged that misappropriated investments were concealed through a combination of improper scrip lending agreements, stockbroker confirmations and legal agreements.”

Kebble and some of his fellow RG&E directors acted in concert with some directors from JCI Ltd that company's token treasury called Consolidated Mining Management Services (CMMS), as well as other parties, the report found. CMMS is estimated to have processed about R3bn in cash and shares in the three and a half years to September 2005.

In April, it was revealed after a six-month forensic investigation by KPMG Forensics that Kebble had presided over the misappropriation of about R500m at JCI.

Umbono Financial Advisory Services conducted the RG&E investigation at the behest of RG&E’s new board in mid-October last year. The board wanted to discover the whereabouts of 26.6 million Randgold Resources shares the company was said to have owned but that had disappeared in the tangle of transaction Kebble set up to enrich himself and create deals.

Kebble was shot dead under mysterious circumstances in September 2005 after he was ousted from the boards of RG&E and JCI. Both companies' shares were suspended on the JSE in August.

RG&E and JCI have both instituted claims of R165m and R172m respectively against Kebble's estate. The Cape High Court granted RG&E's sequestration application on the estate on Tuesday morning.

Creditors have said Kebble's estate is "hopelessly insolvent", with liabilities exceeding assets by at least R446m.

RG&E’s board has called for a general meeting on 30 June this year where shareholders can ask questions about the company and forensic investigation. They can also put forward nominations for directors on the board.

The largest shareholders are fund managers Allan Gray, with 25%, JCI and Aflease with 12% each. American Depository Receipts make up 30%.

Neal Froneman, CEO of Aflease Gold, said this company had names in mind for who it would like to see on the board, but it would discuss this with other major shareholders.

Froneman again raised concerns about conflicts that could arise could of the same directors sitting on RG&E and JCI boards.

"We would like to see Randgold have a board independent of JCI. Shareholders with management should determine the company's future, and it does have a future. Of course, the last scenario is that it could be liquidated. As long as it's not a firesale it will also generate value," Froneman told Miningmx.

RG&E has an estimated net asset value of about R20 a share. "It's future looks quite rosy, whether it's liquidation or going as Randgold."

Aflease was one of the first shareholders to call attention to wrongdoings in RG&E, raising concerns about the whereabouts of the Randgold Resources shares and other issues. It requisitioned a shareholder meeting, which the RG&E board tried to delay.
Free news alerts: click here to subscribe
An independent mediation panel has been set up to resolve claims and counter-claims between RG&E and JCI totalling about R1.1bn. RG&E’s legal team is verifying the company’s claims against JCI and its subsidiary companies. Company sources said the figure was likely to be higher than R1.1bn once the final claims were presented.

The mediators could make their recommendations to shareholders before RG&E’s Annual General Meeting on 28 September this year. If shareholders of either RG&E or JCI reject the recommendations, the matter will be taken to arbitration.