Johannesburg - Government’s insistence on awarding mineral rights in the valuable Sishen Mine to Imperial Crown Trading 289 (ICT), despite the serious irregularities involved, is a worrying example of the exercise of state power, Anglo American subsidiary Kumba Iron Ore [JSE:KIO] argued in the North Gauteng High Court on Thursday.
Instead of investigating the irregularities in the court case in which Kumba is opposing it, government is threatening Kumba with prosecution, Advocate Chris Loxton declared in his closing argument in the important court hearing, which ended on Thursday.
In his closing argument Loxton, acting for Kumba and its subsidiary, the Sishen Iron Ore Company (SIOC), objected to a remark by Advocate Willie Vermeulen, acting for the minister of mineral resources, that government would institute criminal charges of fraud against Kumba since Kumba, according to Vermeulen, in its submissions had admitted to fraud in its application for mineral rights in Sishen.
Loxton described Vermeulen’s threat as irresponsible and without legal foundation. The situation almost resulted in a set-to between Loxton and Vermeulen, two of the country’s most respected counsel, and was defused only when Loxton declared that he had in no way tried to impugn Vermeulen’s competence, but was concerned about the actions of his client, the state.
Loxton previously submitted to the court copies of the Kumba documents which had been amateurishly forged by ICT and included as part of its mineral rights application.
ICT’s defence was that Godfrey Mfetoane, a former department of mineral resources employee who subsequently worked for Kumba as a consultant, had “planted” the documents in ICT’s files.
This was one of those cases, said Loxton, in which ICT’s version was so patently untrue and Kumba’s version so overwhelming credible that ICT’s version (without oral evidence) could be repudiated.
On Wednesday Advocate Cedric Puckrin, acting for ICT, had argued that the allegations of falsification and fraud were irrelevant after he gave the court an undertaking that ICT would do no prospecting on the Sishen property before its prospecting licence, which was being disputed in the application, had expired.
As to this, Loxton noted Puckrin had said “so what” if it had been falsified – a completely inappropriate statement. Such a finding would be a sorry day for the rule of law in our country.
Judge Ray Zondo reserved judgment.
- Sake24
For business news in Afrikaans, go to www.sake24.com.
Instead of investigating the irregularities in the court case in which Kumba is opposing it, government is threatening Kumba with prosecution, Advocate Chris Loxton declared in his closing argument in the important court hearing, which ended on Thursday.
In his closing argument Loxton, acting for Kumba and its subsidiary, the Sishen Iron Ore Company (SIOC), objected to a remark by Advocate Willie Vermeulen, acting for the minister of mineral resources, that government would institute criminal charges of fraud against Kumba since Kumba, according to Vermeulen, in its submissions had admitted to fraud in its application for mineral rights in Sishen.
Loxton described Vermeulen’s threat as irresponsible and without legal foundation. The situation almost resulted in a set-to between Loxton and Vermeulen, two of the country’s most respected counsel, and was defused only when Loxton declared that he had in no way tried to impugn Vermeulen’s competence, but was concerned about the actions of his client, the state.
Loxton previously submitted to the court copies of the Kumba documents which had been amateurishly forged by ICT and included as part of its mineral rights application.
ICT’s defence was that Godfrey Mfetoane, a former department of mineral resources employee who subsequently worked for Kumba as a consultant, had “planted” the documents in ICT’s files.
This was one of those cases, said Loxton, in which ICT’s version was so patently untrue and Kumba’s version so overwhelming credible that ICT’s version (without oral evidence) could be repudiated.
On Wednesday Advocate Cedric Puckrin, acting for ICT, had argued that the allegations of falsification and fraud were irrelevant after he gave the court an undertaking that ICT would do no prospecting on the Sishen property before its prospecting licence, which was being disputed in the application, had expired.
As to this, Loxton noted Puckrin had said “so what” if it had been falsified – a completely inappropriate statement. Such a finding would be a sorry day for the rule of law in our country.
Judge Ray Zondo reserved judgment.
- Sake24
For business news in Afrikaans, go to www.sake24.com.