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Affairs at Aurora 'unacceptable'

ZONDWA Mandela, Nelson Mandela's grandson and co-director of the Aurora mine which owes its workers millions of rands in unpaid salaries, has blamed illegal miners, the government and trade unions for the collapse of Aurora.

He told Parliament's mining portfolio committee yesterday that because his was a black economic empowerment company, funding was always going to pose a "great challenge".

He said Aurora inherited a problem of acid mine water, and was relying on the government to give it a subsidy to pump the rising toxic water out of the mines before it overflowed.

When the government stopped the subsidy "we began to fall behind with our payment obligations to all those involved in the pumping of water".

Mandela said illegal mining syndicates added to his financial woes as he had to employ more security.

"The problem of theft includes some of our own employees against whom we have had to act decisively and this has caused our relationship with labour to be strained."

The National Union of Mineworkers (NUM) has described responses made by Aurora management to Parliament yesterday as stupidity and injustice to the workers.

Spokesperson Lesiba Seshoka said: "Those guys said the most stupid thing that I've ever heard. You can't blame the union for protecting the right of the workers whom you don't want to pay.

"You cannot also blame the media for the bad publicity, it is their job to be the watchdog of society.

"This proves that if you have political connection, you are the rule of the law."

Politicians did not get a chance to grill Mandela or Aurora liquidator Enver Motala because when the clock struck one, committee chairperson Fred Gona said politicians needed to have a lunch break and adjourned the meeting until June 3.

The DA, Solidarity and NUM slammed the postponement.

A Mineral Resources Department official said it was disturbing Mandela had relied on the government for a subsidy. "This subsidy is not an entitlement. The mine applying must be in a short-term crisis, not dependent on state aid for it to survive."

Seshoka said earlier that it was "disgusting" that Khulubuse Zuma had donated R1million to the ANC last week, while more than 2000 workers starved.

Solidarity's Gideon du Plessis told the committee that when Aurora took over the Grootvlei and Orkney mines, there were 5300 workers and two fully functional mines.

With gold being sold at R300000 a kilogram, Solidarity estimated that Aurora made R100million in the first six months of operation.

"They destroyed 5300 jobs and placed 42000 people in poverty. Various shafts are totally destroyed or flooded and they have polluted the wetlands," Du Plessis said.

The NUM and Solidarity said they spent R5million on providing food parcels to the unpaid miners. Both said they wanted the liquidator, Enver Motala, removed because he was too close to Aurora.

The NUM's Joe Montiisetsi said Aurora directors were living "celebrity lives" while workers starved. He said workers provided security at the mine free of charge because they were hoping to protect Aurora so that another company could buy it and restore their jobs.

"The workers stopped the stripping of the copper mining engine worth between R50million and R100million allegedly being sold for R4million. Amazingly, the liquidator warned them to stop acting as security personnel," he said. "Aurora is stealing. They are taking all sorts of valuable assets to sell."

Montiisetsi warned that since the electricity was switched off, the headgear light was not on at night, and airplanes could crash into it.

An angry Motala said the media had created "negative sentiments" which had caused Aurora's share price to drop. He said the liquidators had gone out of their way to raise money to pay outstanding wages.

He said Unicredit Bank in Europe stopped funding to maintain the mines because the unions had gone on strike. "Had there not been any strikes we would have still been in control of the operations till this day."

ANC MP Mzunani Sonto said a dire picture had been painted. "That state of affairs is unacceptable. You liquidators, why do you prolong this?"