Aurora Empowerment Systems finally liquidated: Directors can now be held accountable for damage of R1,7 billion - Solidarity

Aurora Empowerment Systems was finally liquidated this morning when the North Gauteng High Court ratified the R9 million liquidation application of Copper Eagle, who acted as contractors for the company. Meanwhile, the liquidators of the liquidated Pamodzi Gold mines are expected to submit a claim of up to R1,7 billion against Aurora Empowerment Systems' four directors, Khulubuse Zuma (President Jacob Zuma's nephew), Zondwa Mandela (Nelson Mandela's grandson), Michael Hulley (President Zuma's attorney) and Thulani Ngubani (commercial director), for the damage resulting from the looting of the mining assets under their management.

According to trade union Solidarity, the liquidation order in terms of section 424 of the Companies Act paves the way for legal action against the directors of this company for the Aurora disaster.

"Aurora Empowerment Systems is the parent company appointed by the Pamodzi liquidators to manage the Pamodzi mines in Springs and Orkney," explained Gideon du Plessis, Deputy General Secretary of Solidarity. "The liquidation order will hopefully result in the directors of Aurora Empowerment Systems being brought to book for their mismanagement and self-enrichment," he added.

One of Aurora Empowerment Systems' affiliates, Kaunda Global Mining Resources, trading as Aurora Gold East Rand and Aurora Gold Orkney, was placed under provisional liquidation due to a separate liquidation application of R1,3 million by another creditor, Nelesco. This came after a liquidation application of R3,1 million brought by Solidarity in May this year. The final liquidation of this affiliate, under which the contracts of service of all Aurora employees fell, is expected to be ratified on 1 November.

Statement issued by Gideon du Plessis, Deputy General Secretary: Solidarity, October 4 2011

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