Aurora’s Zuma, Mandela granted time

[miningmx.com] – THE directors of Aurora Empowerment Systems are likely to get another extension in a long-running legal battle over claims of R1.8bn by Pamodzi Gold’s liquidators.

Aurora’s directors and managers, who include Zondwa Mandela, a grandson of Nelson Mandela, Khulubuse Zuma, a nephew of President Jacob Zuma, Thulani Ngubane, and Solly and Fazel Bhana, filed answering affidavits over the weekend, more than a month after the court-set deadline of July 16.

Pamodzi’s liquidators are suing the directors in their personal capacity for the mismanagement of the Grootvlei and Orkney mines, where large-scale asset-stripping took place under Aurora’s watch between 2009 and 2011.

Undeclared gold sales allegedly also took place. Aurora, who had control over Pamodzi’s assets, failed to raise the money to pay the purchase price or fund day-to-day operations at the mines.

Three years after Aurora was finally removed from the operations, more than 5,300 former Pamodzi employees are still owed around R28m in outstanding wages and other pay.

Judge Eberhard Bertelsmann said he would rule on Tuesday on whether another extension would be granted.

While it will be opposed by the legal teams of the liquidators and trade unions Solidarity and the National Union of Mineworkers (NUM), the expectation is that Bertelsmann will grant the extension, allowing more time to study the responding papers.

A separate claim of R35m against the Bhana family is expected to continue in the North Gauteng High Court tomorrow.

Should this claim be successful, it will provide the first opportunity to repay some of the outstanding money to workers, said Gideon du Plessis, general secretary of Solidarity.

Former employees who were protesting outside the court were sceptical that Aurora’s directors would be held accountable, or that they would ever be paid.

“We do not have much hope in what’s happening at court. The Aurora people have been protected for so long, and nobody has done anything to hold them accountable.

“UIF (unemployment insurance fund contribution) was deducted from our salaries but never paid over; we never saw a cent of it once Aurora was gone,’ said one former employee who worked at Orkney mine for 20 years.

Aurora also stood accused of looting pension and provident fund contributions and for various environmental transgressions.

“A culture of impunity is ruling in this country and it must be stopped. Chris Hani must be spinning in his grave,’ the former mineworker said.