Long-running Aurora mining saga continues

An application by Pamodzi Gold's liquidators to declare the directors and managers of Aurora personally liable for debts of R1.8bn has been postponed until March next year. But three years after that company left the Grootvlei and Orkney gold mines in ruins, former employees say they have little faith in a long-delayed court process to recover outstanding payments. Business Times reports that protesting outside the North Gauteng High Court, former Orkney mine staff said they were tired of delays and empty promises about pay and other benefits owed to them since 2009 and now estimated at about R28m. Liquidators of Pamodzi Gold, which owned the Grootvlei and Orkney mines when the company went into liquidation in 2009, are trying to recover the money from directors and managers of Aurora, which took control of the mines but never coughed up the purchase price. These directors and managers included Khulubuse Zuma, a nephew of President Jacob Zuma, Zondwa Mandela, a grandson of Nelson Mandela, Thulani Ngubane and Fazel and Solly Bhana. Full Business Times report

The Congress of South African Trade Unions (Cosatu) says it is highly disappointed that the North Gauteng High Court has agreed to the postponement of the case. The union said, however, that it is not a victory for Aurora directors but for workers that the case is now to be concluded within six months and those who are implicated will be facing the law. Cosatu statement

Trade Union Solidarity has welcomed the news that Aurora workers may be getting some money after five years of waiting, according to an eNCA report. This was after the former managers of Aurora Empowerment Systems and some of their family and friends have been ordered to repay over R15m to the company's liquidators. 'Hopefully by the end of September money will be able to flow in, because workers are facing their fifth Christmas with that cloud hanging over their head. So hopefully by Christmas the first dividends will be paid,' said Gideon du Plessis, Solidarity general secretary. The report says this court decision is the first legal victory for liquidators and hopefully the miners too. Full eNCA report

Mining Weekly reports that Judge Eberhard Bertelsmann granted the order in the Pretoria High Court in favour of Aurora's liquidators against Sulliman Bhana, his son Faizel, wife Zubaida, daughters Shamilla and Feroza and friends Mohamed Limbada and Zeenat Laher. The court order set aside payments Aurora had made to the Bhanas and their friends between 2009 and 2010 for alleged loans they had made to Aurora. The payments were made while Aurora was already factually insolvent and while other creditors such as the workforce and Eskom were not being paid. Full Mining Weekly report

The court order will be the first in a series of similar applications to recoup close to R35m Aurora had allegedly paid out unlawfully. But, says Business Report, it might take years and further expensive litigation to eventually recover the money. Judge Bertelsmann refused to postpone the recision application against the Bhanas and their friends, saying they had raised no arguable defence against the claim. He also turned down their application for leave to appeal and granted a punitive costs order against them. Full report in Business Report

Former liquidator Enver Motala is one of three new targets the remaining liquidators of Pamodzi Gold plan to claim millions of rands from. City Press reports that alongside Motala, three other people who had contributed money to Aurora in the early days of the debacle, and received money back out, are now being pursued for roughly another R20m. These include Woody Chammas, the son of Aurora's auditor back in 2009, who had pitched in R1m to cover Aurora's deposit to bid for the Pamodzi assets in the first place. The report says that Motala had been in charge of the liquidation of Pamodzi until he as well as Gavin Gainsford were removed in May 2011. Five days later, the remaining liquidators evicted Aurora from the Pamodzi mines. Full City Press report