Judge orders Aurora Mine directors to pay up
Khulubuse Zuma and Zondwa Mandela will have to pay millions of rands after mismanaging the Pamodzi Gold Mine.
JOHANNESBURG - The High Court in Pretoria has found that Aurora directors were reckless in managing the mine they took over and are liable for all costs.
Jacob Zuma's nephew, Khulubuse and Nelson Mandela's grandson, Zondwa, will have to pay up after mismanaging the Pamodzi Gold Mine which they had taken over.
WATCH: EWN's Gia Nicolaides talks to former Aurora employee Edwin Mohajane:
Judge Eberhard Bertelsmann said there is no doubt that the directors are guilty of willful misrepresentation.
"Their complete disregard for the consequences of their failure to implement the original transaction is inexplicable, other than they could not care at all about the damage they had caused.
They should have, as should the liquidators, acted to limit further losses at the latest by terminating the agreements for their acquisition of the mines no later than March 2010 and placing the mines on auction if no other purchases could be found."
The two have also been accused of mismanaging the mines, stripping the mine's assets and being responsible for more the job losses when it liquidated in 2011.
Zuma however, was not part of the bid process to take over the mine, but is liable for reckless managing of the mine from 2009.
Trade Union Solidarity said today's judgment is a victory for workers.
"Justice was served and although there is still a road we need to travel before money will flow into their bank accounts of the liquidators."
All directors will have to pay millions of rands in their personal capacity.