Sunday, May 8, 2011

A South African gold mining company owned by members of the Mandela and Zuma families is accused of exploiting its political connections to avoid punishment over its abuse of workers

The company is also accused of profiting from selling mine assets it does not own. Aurora Empowerment Systems, took control of two gold mines just outside of Johannesburg around 18 months ago. South Africa's mining unions claim the company owes its workers more than $1.8 million in unpaid salaries. The managing director of Aurora is Zondwa Gadaffi Mandela, grandson of Nelson Mandela. The chairman is Khulubuse Zuma, nephew of President Jacob Zuma. Another board member, Michael Hulley, is the personal legal adviser to the president. Despite having no previous experience in the mining industry, a high court-appointed liquidator gave Aurora control of two gold mines after the previous owner went bust. Aurora outbid seasoned mining firms with an offer of $92 million. Since then, the company has been at the center of huge controversy in South Africa, with critics claiming that the company has committed multiple legal and regulatory infringements, but has escaped any kind of sanction because of the significant political connections of its senior management. It was recently revealed that Aurora's chairman had made a private donation of $151,000 to the ANC, when his company is yet to pay outstanding wages to its workers. Since taking over operations in 2009, Aurora has never secured the financing to buy the mines outright as it had planned. This is despite company chairman, Khulubuse Zuma, boasting to South African media that the company had "deep pockets" promising profits of "5 to 10 billion dollars" in the first 10 years of business.

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