More bad news on the company run by President Jacob Zuma's legal adviser & his nephew, with Nelson Mandela's grandson Zondwa

THE directors and managers of Aurora Empowerment Systems will face civil claims of R1.7-billion after the liquidation inquiry into the company is wrapped up.

One of the liquidators, Johan Engelbrecht, said Pamodzi Gold - the original owners of Orkney and Grootvlei mines - was set to lodge a R1.7-billion claim from Aurora in coming days.

Aurora, run by President Jacob Zuma's legal adviser Michael Hulley, his nephew Khulubuse Zuma, Nelson Mandela's grandson, Zondwa Mandela, and Thulani Ngubane, has been hogging the headlines for the shocking treatment of miners and the systematic stripping of mine assets.

It is believed that millions of rands generated through mining activity had disappeared while Aurora ran the two mines as well as the unauthorised selling of mining equipment, unlawful destruction of the mining assets and contravention of various laws and statutory regulations.

The four directors were the subject of an insolvency inquiry in terms section 417 and 418 of the Companies Act for the alleged mismanagement of Pamodzi's mines in Orkney and Springs.

Aurora has been liquidated and faces several claims, including a R4.6-million claim by trade union Solidarity for salaries which were not paid at the former Pamodzi mines.

Since the directors were summonsed, they have snubbed the insolvency hearing by being absent, citing various reasons.

Early this year liquidators considered to subpoena Mandela and Ngubane to give testimony in the liquidation inquiry of their troubled company in the Pretoria Magistrate's Court.

Mandela has been accused of delaying the inquiry, and Ngubane of lying in his testimony to the commissioner appointed by the Master of the Pretoria High Court.

At one stage Zuma's testimony was put on hold because he refused to testify in English, and wanted a Zulu interpreter. Hulley gave his testimony last year.

Ngubane said yesterday as far as he was concerned, the inquiry was not completed.

Zuma, Hulley and Mandela could not be reached for comment yesterday.

Following Zuma's testimony about his participation in the alleged mismanagement of Pamodzi Gold mining assets, and the disposition of money that was meant for workers, liquidators felt they had enough evidence to wrap up the inquiry.