JOHANNESBURG (miningweekly.com) – Thursday’s court ruling that the directors of Aurora Empowerment Systems were liable for the damages related to the stripping of assets at the liquidated Pamodzi Gold mines was welcomed by trade unions and the Portfolio Committee on Mineral Resources.
Following a protracted legal battle spanning the course of five years, the High Court in Pretoria held Aurora directors Khulubuse Zuma, Zondwa Mandela, Thulani Ngubane and their business associates Solly and Faizel Bhana responsible for the extensive losses that had cost more than 5 000 mineworkers their jobs and retirement benefits.
While lauding Judge Eberhard Bertelsmann’s judgment, the Portfolio Committee on Mineral Resources commented that the matter should not have reached the courts in the first place.
“There are over 5 000 former mineworkers who were left destitute and our view has always been that this matter could have been handled by way of negotiations between the two parties to find an out-of-court settlement,” argued committee chairperson Sahlulele Luzipo.
The directors stood trial for mismanagement and corruption, resulting in the closure of two Pamodzi mines in Springs and Orkney, and faced additional multimillion-rand claims for damages by the former Pamodzi liquidators.
“If they do not have the financial ability to pay these damages, an application for sequestration could be brought against them after which the court may give instruction for the seizure of their assets,” trade union Solidarity general secretary Gideon du Plessis explained.
However, the National Union of Mineworkers (NUM) raised concerns over potential appeals processes.
“We are happy about the judgment, but we are worried that their lawyers have indicated that they are going to appeal the judgment and this is another delay.
“We have instructed our lawyers to meet the liquidators and chart the way forward to demand the payment for the workers as soon as possible,” said NUM deputy president Joseph Montisetsi.
Luzipo added that, although the directors had a right to recourse in the form of a Constitutional Court appeal, he hoped the judgment brought to an end a protracted court battle.