Scandal hits Aurora directors

2011-08-12 07:32

Financial irregularities of more than R20 million were allegedly committed when Aurora Empowerment Systems directors served on listed electronic chip maker Labat’s board.

Labat yesterday claimed it uncovered the irregularities whereby Aurora’s directors were allegedly going to use Labat as a vehicle to reverse-list on the JSE, Business Day reported today.

The directors include Zondwa Mandela, grandson of former president Nelson Mandela; and Khulubuse Zuma, President Jacob Zuma’s nephew.

Cheques for R9 million were signed by “unauthorised signatories” of the company to pay off Aurora’s debt, Labat said in a statement to the JSE according to the Business Day.

“These cheques were stopped at the bank. The company successfully defended this claim, has consulted with attorneys and is of the opinion that there is no liability in respect of this Aurora debt,” Labat reportedly said.

Aurora was being liquidated after trade union Solidarity’s R3.1 million claim in unpaid wages at the two mines they managed.

Labat also claimed that a $2 million investment, which an investor had been led to believe was to be invested in the company, was “diverted” to an Aurora account.

Labat said it never received the money and had no “obligation or liability” regarding the funds, the newspaper reported.

“The directors are informed that the investor is pursuing the matter against the third parties,” Labat said in a statement.

The company said it also reported these irregularities to the Independent Regulatory Board for Auditors, the JSE and “other relevant authorities”.

According to Business Day, no Aurora director was available for comment.

However, Aurora’s commercial director Thulani Ngubane was contacted, but said he was not aware of Labat’s claims before he put down the phone.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.