Rankotea mining royalties misused
The Hendler Commission of inquiry into management of royalties and income derived from mining vanadium at Evraz Vametco mine in Rankotea had found evidence of misuse of millions of community funds which had not been audited since 2002, North West Premier Thandi Modise’s report presented to the community on Saturday confirmed.
The commission report that proposed that a forensic audit be instituted on the financial affairs of the Co-owners Association commencing in 2002 until 2013 to determine if there were any illegal actions on the part of anyone who was responsible was unanimously accepted by close to 200 community members that attended the feedback community meeting held at the Vametco Community Hall.
Among others, the findings of the commission presented by the Acting Premier & MEC for Finance, Paul Sebegoe on behalf of Premier Modise was that the community development fund was used for projects not approved by the impoverished and underdeveloped community.
The commission which had presented its report to Premier Modise in November 2013 had also established that the Executive Committee had not over the years disclosed any information regarding projects funded from the development fund, the report read.
“The current Executive Committee was elected for a five year term in 2005 but was still in office despite a court order declaring their existence to be unconstitutional,” the commission had observed.
In addition to endorsing the appointment of Strydom Venter as an Administrator to run the affairs of the community on a six months period, the meeting agreed to the registration of the Co-owners Association as a legal entity in a form of a trust or a company to make provisions for governance structures that will have among other things fiduciary responsibilities and that a firm of auditors be appointed to replace the firm of Attorneys in the distribution of the royalties to the beneficiaries.
“With all the minerals, this community had sadly remained underdeveloped because of disunity and greed which has benefitted a handful of people and their cronies for over 30 years. We trust that the outcome of the forensic audit will take us forward and trace every cent that was lost to us,” said Thamar Tsomele.
The 87 year old granny’s sentiments were echoed by an overjoyed 56-year old Isabella Ramadie who is a beneficiary and descendants of the co-owners.
“After the long wait, the Premier has not disappointed our expectations. It is now up to us to hold hands and ensure that the mine’s corporate social investment programme delivers much needed development projects in the community and that royalties which were withheld are equitably shared,” added 61- year- old Thathi Motsepe.
Venter who is a registered accountant was mandated to commence negotiations with the mining companies in the area regarding the shareholding of the co-owners in the company and to as part of his programme of action to be developed by the end of March assist the 117 families who are co-owners to establish family trusts in which all family members and descendants will become beneficiaries.
The trusts should be founded through a resolution to be signed by family members who are 18 years and older, these members shall also be legible to vote for members of the board of trustees that shall represent the interests of its respective family in the Co-Owners Association.
The Administrator was further mandated to register a holding company in which all established family trusts will hold equal shares. One of the subsidiaries of the holding company to be registered is to house the shares that the co-owners will acquire from the mining company.
Acting Premier Sebegoe reassured the community of the provincial government’s support and emphasised that Premier Modise wants communities to take charge of their affairs and to work in partnership with government and business to accelerate development.
“We wish to thank you for your patience and cooperation with the protracted process. All of us have a responsibility to work in partnership with Evraz Vametco towards compliance with the mining right charter and to ensure that whatever proceeds derived from mining activities benefit our broader community,” emphasised Sebegoe.
The commission was initially appointed to investigate allegations of mismanagement of mining royalties by former Premier Edna Molewa in 2008 and only concluded its work after several adjournments that included the period during which the retired Judge Herbert Hendler had to undergo operations overseas and resignation of some members of the commission.
Enquiries:
Lesiba Moses Kgwele, Spokesperson
Tel: 018 388 3705
Cell: 083 629 1987
Fax: 018 388 3157
E-mail: LKgwele@gmail.com
