Aurora bosses in hot water

Published Jul 6, 2015

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Johannesburg - President Jacob Zuma’s nephew Khulubuse Zuma and Nelson Mandela’s grandson Zondwa Mandela could face criminal charges for stripping the assets at two gold mines and leaving workers destitute.

The Hawks said on Sunday they had opened an inquiry into the involvement of Aurora Empowerment Systems in the destruction of the mining company’s assets.

The move came after the recent judgment by the high court in Pretoria, which found that the directors and associates had acted in a reckless and fraudulent manner.

“We have opened an inquiry. The judgment held serious allegations of fraud and racketeering,” Hawks spokesman Brigadier Hangwani Mulaudzi said on Sunday.

He indicated that Zondwa had previously been investigated for fraud, but that the Hawks did not have enough evidence to lay charges.

“It was very difficult for us to have an investigation because we did not have the documentation we felt it was necessary to have,” Mulaudzi said.

The Hawks would meet the National Prosecuting Authority this week and approach the master of the high court to gain access to the evidence used in the case.

“(We are) dealing with fraud charges, money laundering, racketeering and issues of misrepresentation. We are going to make sure that we cover all the bases. If the criminal charges are there we will lay them,” Mulaudzi said.

Judge Eberhard Bertelsmann on June 25 found that Khulubuse, Zondwa and their cohorts in Aurora – Thulani Ngubane, Solly Bhana and Fazel Bhana – were liable for the cost of the destruction of mining assets they had gained control of.

“The entire project was and remained a pipe dream,” the judge said. He ordered Aurora to pay shareholders and liquidators R1.7 billion compensation for their role in the demise of the operations, which left 5 300 workers jobless and destitute.

Aurora was appointed in 2009 to manage two gold mines near Joburg after the Pamodzi Gold company, which ran them, went into liquidation.

 

Meanwhile, Khulubuse’s spokesman, Vuyo Mkhize, has indicated that his client would be appealing against the judgment. He dismissed as “fabrications” claims by trade union Solidarity that Khulubuse had offered to negotiate a settlement around salaries outstanding to workers.

“We have no interest in engaging in any negotiations to settle the matter. Our focus is exclusively on getting the ruling overturned,” Mkhize said.

“Even if we were to negotiate a settlement, we would approach the applicants in the matter who are Pamodzi’s liquidators, not Gideon du Plessis.”

But Du Plessis, solidarity’s general secretary, was adamant that Khulubuse had contacted him after the judgment to resolve the issue of the workers’ outstanding salaries in order to “restore his reputation”.

Solidarity is representing about 200 of the affected workers.

As Khulubuse, Zondwa and their fellow directors weigh their options, Aurora’s former miners are sceptical about receiving what is owed to them. “I can’t go home to watch my children go to bed with nothing to eat. I avoid answering calls from home because I know they will ask for some money,” said Mlendeli Mami, from the Eastern Cape.

“I don’t think (Aurora) will pay us. The mine was owned by the Zumas, so they will always be protected. Even if he does not pay us, nothing will happen,” he added.

Carlos Chana of Mozambique said: I don’t know what my children eat as I can’t afford to buy airtime to call them.”

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