Bhanas the first to cough up for Aurora debacle – Solidarity

15 February 2016

The Bhana family will be the first to cough up compensation for their involvement in the Aurora debacle, trade union Solidarity said today. According to a payback agreement reached between the liquidators of Aurora Empowerment Systems and six members of the Bhana family, they must pay back approximately R6 million to the liquidators.

In terms of the agreement, Fazel and Solly Bhana, as well as four close family members, must repay R200 000 on 12 February. At the end of the month they must pay another amount of R200 000, followed by R2,5 million by the end of March. They then have until 31 January 2017 to pay back the balance in equal monthly payments.

Solidarity General Secretary Gideon du Plessis says this agreement is the second effort by the liquidators to get the Bhanas to compensate for their involvement in the Aurora debacle. “In terms of a previous agreement, the Bhanas should actually have repaid R7 million, but they did not comply. With the latest agreement, the Bhanas, however, indicated that they will not oppose the agreement and they also agreed to sequestration if they do not comply with the agreement,” Du Plessis said.

Du Plessis is of the opinion that although the victory, in view of the Bhanas reputation, is somewhat doubtful, it can still be regarded as a victory for the Aurora workers. “The judicial process is slowly moving while the noose around the guilty parties' necks is being tightened. Every small victory is a step closer to justice for the Aurora employees. The abovementioned agreement with the Bhanas is just a consequence of many judicial processes currently running,” Du Plessis said.

Aurora Empowerment Systems is the parent company which was appointed in the past by the Pamodzi Liquidators to manage the Pamodzi mines in Springs and Orkney. However, the directors of the company destroyed the mines through ransacking and mismanagement. In 2015, the High Court in Pretoria ruled that the former directors of Aurora were responsible for R1,7 billion in compensation due to ransacking and mismanaging of the mines. However, the directors appealed this ruling. Judgment in this case is expected in the near future.

Statement issued by Gideon du Plessis, General Secretary: Solidarity, 15 February 2016