Zuma silent on alleged role in nephew's mining deals

'No, no, there is no comment, as you can see from the story itself,' his spokesperson Mac Maharaj is quoted as saying in a report on the Fin24.com site. He was referring to a Mail & Guardian report that Zuma allegedly helped secure a $2m investment (R13m at the time) for Khulubuse Zuma's Aurora Empowerment Systems company. In the report, Maharaj confirmed he had received detailed questions about the allegations but later indicated there was no response from the Presidency. Global Emerging Markets (GEM) director Chris Brown told the newspaper he had been treated to a face-to-face meeting with Zuma on the morning of the Fifa World Cup final on 11 July 2010. He alleged in the report that Zuma 'thanked him many times' for helping to bail out the flailing company during their meeting in Zuma's living room. At the time of the claimed meeting, Aurora was desperately trying to raise funds to follow through on its bid to buy the Pamodzi gold mines out of liquidation. The newspaper stated Brown's claims were buttressed by circumstantial evidence. GEM launched legal action against First National Bank after the investment it paid into an account was later transferred and disappeared. A bank employee has reportedly resigned, and FNB said it intended defending itself against the claim against the bank. Full Fin24.com report

The Mail & Guardian report notes that by the time of Zuma's meeting with Brown Aurora had been courting GEM for some time. It says that in April 2010, Zuma's private attorney, Michael Hulley - acting on behalf of Aurora - announced that GEM had agreed in principle to advance up to R725m to Aurora through the purchase of shares, provided the latter listed successfully on the JSE. The report says Aurora tried to get on to the JSE by buying Labat Africa - a small listed technology company led by former rugby administrator Brian van Rooyen. But Aurora struggled to meet the conditions set by Labat and the JSE, and the listing, through a takeover of Labat, had not occurred by July 2010. By then, Aurora was in severe financial difficulty and was facing fierce public criticism about its interim management of the Pamodzi mines and failure to pay workers. On 12 July 2010, the online publication Moneyweb reported Brown had arrived in SA. Moneyweb quoted Pamodzi liquidator Enver Motala as saying: 'I have met with Chris Brown, one of the directors at GEM and he confirmed that R50m in interim funding is to be made available.' The news came as the remaining 100 employees keeping Aurora's Grootvlei mine under care and maintenance were reportedly threatening to walk out because of non-payment. Now it has been alleged that the day before, 11 July, Brown had been treated to a face-to-face meeting with Zuma. In an e-mailed response to questions from amaBhungane, the M&G's investigative centre, Brown confirmed meeting Zuma on the morning of 11 July. The New York-based businessman said Zuma 'thanked' him 'many times' during their meeting. Brown reportedly told amaBhungane that the meeting was arranged by Khulubuse Zuma and Fazel Bhana, Aurora's self-styled 'chief strategist of mergers and acquisitions'.

With hindsight, however, it appears Brown believes Aurora manipulated him, notes the M&G report. Asked why he thought the meeting was arranged, Brown wrote: 'To bullshit GEM and pump GEM up to invest in the mine; yet all along, they had arranged to steal the funds by setting up an account at a different branch.' Khulubuse Zuma said: 'While it is true that Mr Brown and I did discuss his wishes to meet with the President and other senior government leaders to discuss his firm's investment plans ... it is patently untrue that I ever undertook to help him in this regard. To this day, I am not aware of any meetings that Mr Brown did manage to secure with any senior government leader or what was discussed at such meetings, if ever they did take place. The question of the GEM transfer into Labat/Aurora is the subject of the Aurora liquidation inquiry that is currently underway and I am not at liberty to discuss this matter at this stage.' Responding to questions on Bhana's behalf, attorney David Swartz reportedly said: 'As the matter is still pending and the various issues and questions raised by you are material to the numerous issues in dispute, it would be improper for my client to provide any response thereto. In short, the matter is sub judicata.' Full Mail & Guardian report

Aurora's liquidators have reportedly recommended criminal prosecutions of the company directors, including Khulubuse Zuma, the company's lawyers and those liquidators who played what is described as a 'double role' in the liquidation of the Grootvlei mine, claims a Beeld report. The liquidators are looking for R1.8bn that allegedly went missing. Aurora claims to know nothing about a criminal investigation. A spokesperson confirmed that the liquidators are demanding R1.8bn from Aurora, but said such a claim would be opposed. Full Beeld report

The President and his nephew are also the subject of a City Press investigation, which alleges Khulubuse Zuma owns an oil fortune of R100bn in the DRC, which he allegedly acquired through the help of his uncle. City Press claims to have found that the President played a vital role in the decision by DRC President Joseph Kabila to award two oil fields in the north-east of his country to Khulubuse in 2010. Eight months before Kabila's decree, in which Khulubuse was awarded two of the most prestigious oil licences in sub-Saharan Africa, he met his SA counterpart in Kinshasa where the oilfields were allegedly discussed. The report claims a high-level intelligence source with knowledge of the relationship between the two heads of state said the meeting in September 2009 occurred while Zuma was on a state visit to the DRC. According to the source, Kabila told Zuma that the untapped oil fields should be used to the benefit of 'South Africa, the ruling party and even (the Zuma) family'. The intelligence source reportedly said Zuma did not accept Kabila's invitation to personally benefit from the oil fields. However, shortly after Khulubuse appeared on the Congo oil scene. The report notes neither Kabila nor the Presidency responded to inquiries. Full City Press report