[miningmx.com] — A $2m investment intended for Labat Africa has found its way to the bank coffers of Aurora Empowerment Systems, the JSE-listed IT firm said on Thursday.
Labat was previously earmarked by Aurora for a reverse listing on the JSE. According to an agreement between the two firms concluded in February 2010, Aurora would’ve transferred all off its assets, including the intended acquisitions of Pamodzi Gold’s Orkney and Grootvlei mines, to Aurora in return for control of the group.
At the time, Aurora nominated Michael Hully, Zondwa Mandela, Khulubuse Zuma and Thulani Ngubane as directors to Labat’s board.
Following the cancellation of Aurora’s status as the preferred bidder by Pamodzi Gold’s liquidators for Grootvlei and Orkney, the four men in June stepped down as Labat directors.
Labat on Thursday issued a statement on two “reportable irregularities’, saying a $2m investment which an investor had been led to believe was to be invested in Labat, was in fact diverted to a Aurora account.
“These funds were never received by Labat,’ read the statement. “The directors are informed that the investor is pursuing the matter against the third parties.’
The other “irregularity’ related to cheques to the value of R9m signed by unauthorised signatories of the company for the payment of Aurora debt.
“These cheques were stopped at the bank,’ Labat said.
“Both of these “irregularities’ occurred during the tenure of Aurora appointed directors in Labat. These directors have been replaced, the board reconstituted and these matters have been reported to IRBA, the JSE and other relevant authorities for appropriate action.’
Repeated efforts to reach Aurora’s directors for comment were unsuccessful.
