The liquidators of Aurora Empowerment Systems, which is accused of asset-stripping bankrupt Pamodzi Gold, amongst other dubious activities, will lay charges of fraud this week against Nelson Mandela’s grandson, Zondwa. President Jacob Zuma’s nephew should probably also look forward to facing some music.

Charges are also likely to be brought against an attorney for Aurora, Ahmed Amod.

The directors of Aurora are facing a potential R1,7 billion in claims from the liquidators, who allege millions have been squandered from the company in cash, gold sales, scrap metal and mining equipment.

That means that Khulubuse Zuma, President Jacob Zuma’s nephew, should also face claims against him because he holds a directorship with Aurora.

For Zuma, it’s quite simple really: he’ll be pursued under section 424 of the Companies Act, under which directors can be held personally liable for company debts.

Johan Engelbrecht, one of the joint provisional liquidators, yesterday said the fraud charges were based on the:

Apparent manipulation of Amod’s trust account in the transaction between Aurora and Labat Limited.

Engelbrecht said the transaction was supposedly utilised to finance the acquisition of Pamodzi assets.

The Solidarity trade union, a creditor of Aurora, is appalled at the lack of action taken against Aurora’s nasty state of affairs. It would ask the JSE and the police:

To treat these charges as a priority as more than 5300 South Africans were ruined financially by the Aurora case, while those responsible for the crisis are apparently untouchable.

Labat, a JSE-listed silicon chip business, was to have been used as the vehicle through which Aurora Empowerment Systems would reverse list.

But, in August, Labat told the JSE that two irregularities had been spotted and reported them to its auditors.

Engelbrecht said this caused the joint provisional liquidators to refrain from cancelling the Pamodzi transaction when, in fact, they had grounds to do so.

Aurora, through Amod, certified to the securities regulator that monies are available to make payments to minority shareholders when, at that time, no funds were contained in the trust account.

In fact, some two days later, Amod apparently received cheques signed by Mandela but which were stopped. Clearly this was a planned thing.

Charges against Mandela and Amod should be confirmed this week.

[Source: BusinessDay]