Aurora: Bhanas will pay the penalty for R30 million's "loans"

The illegal income of R30 million that the Bhana family made from Aurora may be paid to Aurora employees soon, trade union Solidarity said today. This comes after the Aurora liquidators instituted legal proceedings against the Bhanas to recover the money. The Bhanas allegedly pocketed R30 million that was owing to Aurora employees under the cover of loan repayments over the period November 2009 to April 2012.

Solly Bhana and his son, Fazel Bhana, were identified as the individuals at the helm of Aurora following an insolvency inquiry. They allegedly made payments totalling R30 million to Solly Bhana's wife, Zobeida Bhana, his daughters, Shamila Essay and Ferosa Bhana, his son-in-law, Yaseen Theba, and the Bhanas's family businesses, Woody Diamonds and AW Wholesalers, under the cover of loan repayments between 2009 and 2010.

‘The Bhanas's actions led to 5 300 Aurora employees and their families being left destitute,' said Gideon du Plessis, Deputy General Secretary of Solidarity. ‘Even if the Bhanas borrowed the money from Aurora, the "payments" to the Bhanas were still illegal, as, contrary to the Insolvency Act, they favoured one creditor over another at a time when Aurora was already insolvent,' explained Du Plessis.

Meanwhile, it has come to light that several of the Bhanas who benefited from Aurora were arrested by the Johannesburg Commercial Crime Unit in March 2002 for VAT fraud amounting to R19 million.

Statement issued by Gideon du Plessis, Deputy General Secretary: Solidarity, July 30 2012

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