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'Massive fraud' at Zuma mine

Mar 19 2010 07:20 Elise Tempelhoff

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Johannesburg - Aurora Empowerment Systems, belonging to Zondwa Mandela and Khulubuse Zuma, is getting into even deeper trouble.

The latest crisis has arisen with the Mineworkers Pension Fund reporting Aurora to the Financial Services Board and the National Prosecution Authority, because thousands of workers' pension contributions have been deducted from their salaries, but for the past five months these have not been paid over to the pension fund.

This amounts to massive fraud, said the deputy CEO of Solidarity trade union, Gideon du Plessis, on Thursday, the day the charges were laid.

The pensions of more than 2 000 workers at Grootvlei on the East Rand and Orkney are involved.

Fazel Bhana, the mine's financial adviser, said he was not aware of the charges and still believed the future looked "rosy".

Meanwhile Frazier Namanyana, chairperson of the National Union of Mineworkers, said the union's members planned to strike from Friday as they had not received their February wages.

They could no longer work without pay, he insisted.

In a letter to Du Plessis on Thursday, Bhana said he regretted the fact that the salaries were overdue.

The letter expressed his deep regret and total sincerity. Aurora workers, he pointed out, were incredibly hard-working and loyal, and totally supportive of Aurora.

According to the letter, the mine's management was unfortunately struggling with large capital outlays and cash flow difficulties.

Production levels were at a trough. The former owners had been unable to make the mine viable and the consequences of their actions were now overshadowing the mine.

He added that Aurora was in discussion with funders and the workers ought to see the fruit of their labours by the end of April.

The Blue Scorpions are currently also investigating a complaint against Aurora related to Water Act violations, after the dumping of millions of litres of acid mine water in the Blesbokspruit.

Beeld has also reliably learned that Eskom is on the point of claiming R13m from Aurora for an overdue electricity account. Aurora is also already R100m in the red with its funders.

Mandela is a grandson of former president Nelson Mandela, while Zuma is the nephew of President Jacob Zuma.

Michael Hulley, President Zuma's legal representative, is a member of the Aurora board of directors.

- Beeld

For business news in Afrikaans, go to Sake24.com.

 
 
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