[miningmx.com] — THE dismissal of two Pamodzi liquidators have jeopardised a possible rescue transaction to keep the assets in production, one of the pair claimed on Monday.
Senior liquidator Enver Motala and Gavin Gainsford from KPMG’s liquidation division were both dismissed by the department of justice on Monday.
Last week Motala and Gainsford, with another four colleagues, were summoned to appear before a special panel of the Master of the North Gauteng High Court in Pretoria. The liquidators were required to explain their roles in the troubled liquidation process of two Pamodzi mines.
Department of justice spokesperson Tlali Tlali said the two had not given their cooperation when asked to appear.
On the strength of this, he said, as well as further information at the department’s disposal, the department, through the medium of the Master’s office, had decided they were no longer fit to serve as provisional liquidators.
Motala said the dismissal was a “sick joke’.
He said they had been given no reason for the dismissal. They had repeatedly asked what was expected of them and had received no answers. The Master had even refused to tell them exactly what the hearing was about.
The Pamodzi Group has been under provisional liquidation since April 1 2009.
The liquidation process has been mired in controversy, inter alia because the liquidators allowed an empowerment group, Aurora Empowerment Systems, to manage the assets while seeking funding to buy those assets.
Unions call it scandalous that Aurora was allowed to take over the mines at all.
Aurora had no mining experience and had simply stripped the existing assets, said National Union of Mineworkers (Num) spokesperson Lesiba Seshoka.
Seshoka said Num believed new blood could give the process momentum.
Gideon du Plessis, deputy general secretary of the Solidarity trade union, said the union was satisfied with the dismissals.
Motala had protected Aurora’s interests, he said, and had often stepped into the breach for them. Solidarity had long wanted them removed.
Motala said Aurora had been permitted to manage the mines in an effort to protect worker’s jobs.
Aurora had had until the end of May to get the necessary funding to buy the mines, he said.
A Chinese investor, Shandong, was currently in South Africa to negotiate with Aurora. Indications were that recent developments would now prejudice their interest, Motala said.
Motala said it had always been the liquidators’ plan to remove Aurora from the mines should it not obtain the necessarily finance.
The secured creditors had asked the liquidators to give Aurora a chance to the end of May, he said. These creditors, including Unicredit in Germany, had even said they would make no money available (for the liquidation process) if Aurora was thrown off the mine.
Tlali said a quick decision is expected on whether to appoint new liquidators or continue with the remaining liquidators.
