JOHANNESBURG - Trade union Solidarity on Sunday said the politically-connected directors of Aurora Empowerment Systems, could face further legal action if the North Gauteng High Court rules that they should be held liable for the collapse of two Pamodzi mines.
In 2009, Aurora took over the Grootvlei gold mine on the East Rand and Orkney in the North West, but was later removed as the preferred bidder. It was placed under liquidation when it failed to pay its creditors and almost 5 300 workers.
Joint provincial liquidator Johan Engelbrecht, alleges that Aurora’s directors managed the company recklessly and intended to defraud Pamodzi's liquidators and creditors.
Engelbrecht further claims that Pamodzi had proved that the insolvent state of Aurora amounted to R122-million in gold sales and R1.8-billion obtained through the destruction of the mines' assets.
The union and liquidators approached the court with an application, seeking to have Aurora's three directors, as well as controversial financial consultants Solly and Fazel Bhana, declared liable for the mines' collapse.
The Bhanas were named as respondents on the application, alongside directors Khulubuse Zuma, Zondwa Mandela and Thulani Ngubane.
Zondwa is the grandson of former President Nelson Mandela and Khulubuse is President Jacob Zuma’s nephew.
The papers claim that workers were not paid, even though there was substantial income from gold sales.
The Deputy General Secretary of Solidarity, Gideon du Plessis, said the five men could also be sued in their personal capacity.
Du Plessis said once the high court confirms that they traded recklessly in terms on the Companies Act, “that is when a flurry of legal action will follow against those five individuals.”