Bhanas accused of being the masterminds behind Aurora debacle

Based on recent court papers filed by the liquidators of Aurora Empowerment Systems, the Aurora directors and two business associates of the Bhanas, the Bhanas are seemingly being accused by their former business associates of being the masterminds behind the Aurora scandal and manipulating matters behind the scenes, trade union Solidarity said today.

In the latest development, Mohamed Firoze Limbada and Zeemat Ebrahim Laher, business associates of the Bhanas, accused the Bhanas of recalcitrance and tardiness in the handling of the recent court proceedings against the so-called Aurora investors (see court application attached). Limbada and Laher are part of the group of "investors" who collectively have to repay R35 million to the Aurora liquidators in terms of a judgment issued by the North Gauteng High Court on 26 August 2014.

Misleading the court, media and public

According to Gideon du Plessis, General Secretary of Solidarity, the repayments need to be made after the Bhanas' family and friends irregularly loaned money to them. These loans were repaid with a 100% interest. Du Plessis says these payments are contrary to the provisions of the insolvency act.

"On several occasions the Bhanas misled the court and the public about their financial situation. For example, they recently used their lack of means as a reason for not having filed their court papers on time, referring to this lack of means both in court and in interviews with the media (the most recent being an interview with CNBC Africa yesterday, see link below). They also claim that it was only because they could not afford proper legal representation that the court gave judgment against them on 26 August 2014 for the repayment of R15, 5 million, their part of what is owed," Du Plessis said. Solly Bhana furthermore arrived at the CNBC studios yesterday with a whole host of legal practitioners. 

However, in their affidavit Limbada and Laher claim that Fazel Bhana was acting on behalf of all the investors in the legal proceedings, and at one stage appointed a second team of attorneys on behalf of the investors, in addition to the existing team. It is therefore clear that money was not an issue to the Bhanas. "According to the application the Bhanas paid for the services of all the attorneys who appeared on their behalf in court and, therefore, they seemingly misled the court in their plea," Du Plessis said.

Alienation of business associates

Du Plessis says it is clear that the Bhanas have increasingly alienated their former business associates. In court papers of the aforementioned case it was submitted that the Aurora directors, including Khulubuse Zuma, Zondwa Mandela and Thulani Ngubane, all accuse the Bhanas as key players in the reckless management of the Pamodzi assets. They also confirmed that the Bhanas had granted unauthorised payments to the so-called investors amounting to a total of R35 million without the directors' knowledge or approval.

Du Plessis added that the Aurora directors are now disclosing some unflattering details about the Bhanas. For example, the Bhanas's abuse of so-called political connections has once again come under scrutiny. "An affidavit submitted by Thulani Ngubane, supported by an affidavit signed by Mandela and the Bhanas, clearly reflects an incident where former Pamodzi liquidator, Enver Motala, requested the Bhanas to use their political influence to overturn directives from the Department of Mineral Resources. The directives were overturned within an hour," Du Plessis said.

Apportioning blame

According to Du Plessis, the Bhanas are increasingly trying to apportion the blame for the Aurora debacle on others in attempt to absolve themselves. "In the CNBC Africa TV debate, which took place on 25 September 2014 (see link below), the Bhanas even tried to blame Solidarity members for the mismanagement and destruction of the mines. This is simply a desperate attempt to absolve themselves from the consequences of their actions," Du Plessis says.

Many of the interested parties are accusing the Bhanas of being the masterminds behind the initial Aurora bid. In response, the Bhanas are trying to find accomplices to share in the blame for the damages of up to R1,8 billion they were instrumental to. "Even though the Bhanas are certainly not the only parties responsible for the damages, they most certainly need to step up to the plate and accept responsibility for their hand in the damages," Du Plessis said.

Avoiding attachment of assets

Du Plessis expressed the hope that the sheriff of the court would soon execute the order to attach the assets of the Bhanas for the R15,5 million part of their collusive dealings. The first attempt was not successful because last week the sheriff had arrived at an empty house that had been vacated by the Bhanas before their assets could be attached.         

Click here to view the court papers.

Click here to view the CNBC Africa TV debate.

Statement issued by Gideon du Plessis, General Secretary: Solidarity, September 26 2014

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