Alexkor: Another SOE on the verge of collapse

10 April 2019

Ongoing mismanagement of stated-owned mining company, Alexkor, is threatening to exacerbate the high unemployment rate in Namaqualand and ultimately turn the coastal town of Alexander Bay into a ghost town.

Alexkor Richtersveld Mining Company and Joint Venture (RMCJV) has invoked a section 189 in terms of the Labour Act. It is currently in a drive to get employees to take severance packages after which time forced retrenchments will be made.

Alexkor has long since been in a state of chaos, due to a toxic combination of mismanagement and corruption, as well as the Department of Public Enterprises turning a blind eye to the turmoil of this state-owned entity.

Since the beginning of the year, Alexkor RMCJV was unable to pay staff members’ salaries on at least two occasions. This situation has simply been left, by the failing and uncaring ANC government, to reach this critical point.

Just over a year ago, over 60 employees also had their contracts terminated because they dared to speak out on mismanagement within this embattled SOE. In effect, they lost their income and their ability to mine.

If less money was siphoned into the pockets of connected cadres, and invested in the “business”, then Alexkor would not find itself in this precarious position now.

Whilst Alexkor’s core business is to facilitate access to small miners to recover diamonds, it has become little more than a shell company. At present, there are no people within the management team or on its boards, that are sitting hundreds of miles away in Pretoria, who have real knowledge of the industry, particularly the inshore marine mining industry, which brings in over 80% of their income. Instead, its main interest is protecting the benefits of its top heavy and highly paid management team.

Worst of all, is that the Department of Public Enterprises is fully aware of the situation at Alexkor, but does nothing while the people of Namaqualand suffer.

It will therefore not help calling on Minister of Public Enterprises, Pravin Gordhan, for an intervention.

Alexkor’s failure, is also the ANC government’s failure, brought on by the lack of political will to see small miners the respective community prosper from the Namaqualand’s diamond rich resources.

Only change under a DA-led government will turn the situation around to ensure a booming mining sector in the Northern Cape, that benefits all the people and not just those connected to the failing ANC.

Issued by Andrew Louw, DA Northern Cape Premier Candidate, 10 April 2019