Pamodzi liquidators co-responsible for looting and threatening natural disaster at Aurora - Solidarity

Trade union Solidarity today accused the liquidators of the former Pamodzi mining group's Grootvlei and Orkney Mines of being co-responsible for the looting at these mines and therefore also for the looming natural disaster in the areas surrounding the mines, as a pumping station still has not been re-installed after six weeks.

This comes after the liquidators gave the controversial Aurora Empowerment Systems until May this year to obtain financing for these assets. According to the trade union, the liquidators are a party to the destruction of the mining assets, as they have failed to put an end to the looting by cancelling the transaction.

Gideon du Plessis, Deputy General Secretary of Solidarity, paid a visit to the Grootvlei Mine in Springs yesterday to get first-hand knowledge of the damage and destruction at the mine. According to Du Plessis, the Grootvlei Mine's Number 6 and Ndlovu Shafts have been completely destroyed and of the seven shafts that Aurora took over in 2009, not a single one is in working condition.

"The Ndlovu Shaft was put up only four years ago. This shaft has been plundered and it will cost R100 million to have it rebuilt, which is more than double the original construction cost of R40 million. The other five shafts have also been destroyed," Du Plessis explained. 

Solidarity also accused the liquidators of being jointly liable for the threatening natural disaster in the East Rand for failing to take action. "Aurora removed the pumping station at Shaft 3 under the pretence of moving it to a higher level," Du Plessis said. "It has been six weeks after the pumping station was removed and Aurora still has made no attempt to rebuild it," he added. "According to eyewitnesses, most of the pumps that are worth thousands of rand have been removed from the premises.

The pumping station at Shaft 3 was built in 1985 by the previous government and is the most important pumping station in the eastern basin. Its purpose was to prevent acid mine water from rising. Because the pumps were removed, acid mine water is rising at a rate of one metre a day in the Springs area, which could lead to an ecological disaster in the East Rand," Du Plessis added.

"The liquidators' decision to grant Aurora extensions to raise financing not only led to the destruction of a fully operational mine, but also thousands of job losses and a threatening ecological disaster," Du Plessis said. "Enver Motala, who regards himself as the principal liquidator, has already received R7,2 million in commission," according to Du Plessis. "This commission could have saved thousands of jobs at Aurora."

Du Plessis said that the trade union finds it alarming that Aurora took over a workforce of 5 200 employees on 14 October 2009 and that fewer than 10 employees are left. The arrears salaries owed to employees already totals approximately R10 million.

Meanwhile, Fidelity Security has become the latest security company to end its association with Aurora due to non-payment. Protea Coin Security, who worked for Aurora formerly, has sued Aurora who allegedly owes it millions of rand.

Statement issued by Gideon du Plessis, Deputy General Secretary: Solidarity, April 6 2011

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