Donwald Pressly
Trade unionists have expressed outrage that it has taken five years to sort out problems at Orkney and Grootvlei gold mines and suggested that the government consider making liquidators part of the public service so that they are not associated with business interests related to mines.
Addressing Parliament’s mineral resources portfolio committee last week, were National Union of Mineworkers officials Joe Montesetsi and Maja Mphahlele.
The committee was considering developments at the crisis-ridden mines. The NUM men said in a joint presentation that a comparison of Pamodzi Gold’s Orkney and Grootvlei to Pamodzi Gold Free State – which was bought by Harmony Gold – showed that liquidators should never prefer a bidder who had not secured adequate financial backing.
They said mining companies should also demonstrate that they had appropriate technical skills and a track record. They should also be obliged to demonstrate that they had appropriate working plans.
They said Pamodzi Gold Free State under Harmony presented “a classical example” of how their recommendations had been carried out to the letter. Harmony had offered a lower purchase price than rival bidders but had “a sensible business and project plan”. They had immediately re-employed 800 workers who remained employed to date.
At Orkney in the North West, and Grootvlei on the East Rand, the picture had been very different, the union said. Aurora Empowerment Systems was named the preferred bidder to manage the mines in October 2009. It had stripped mining assets and allegedly pocketed the money. Thousands of workers were not paid for work done and most remained unemployed.
Johan Engelbrecht, a liquidator of the Pamodzi group, said summonses had been issued to Aurora directors arguing they had acted recklessly “with the intent to defraud its creditors”. The cases were to be heard in August.
In 2011 Pamodzi Gold estate liquidators Enver Motala and Gavin Gainsford were fired. They were associated with appointing Aurora Empowerment Systems as the preferred bidder for the two mines.
Aurora’s directors included managing director Zondwa Mandela, the grandson of former president Nelson Mandela; chairman Khulubuse Zuma, a nephew of President Jacob Zuma; Thulani Sheshile Ngubane; Dato Raja Zainal Alam Shah; and Michael Hulley, Zuma’s lawyer.
Engelbrecht said the first payment of R65.7 million had been received from China African Precious Metals (CAPM) for the Orkney assets in December. A final payment was made in February, also of R65.7m. The transfer of the mining rights to CAPM was now “in the final stages”.
At Grootvlei, Gold One/Goliath had paid R70m for certain of Grootvlei’s assets. Departmental approval of prospecting rights on these assets sold to them were a continuing process, the liquidators reported.
Final liquidation of Pamodzi East Rand and Pamodzi Orkney was expected in June.