Motala stripped of liquidator status

2011-09-08 09:12

Sacked Pamodzi Gold liquidator Enver Motala has been removed from the approved panel of liquidators and trustees by the Master of the High Court in Pretoria.

He had changed his name in the 1980s, in an apparent attempt to hide convictions on theft and 93 fraud charges.

This was reported in Business Report and Sake24, quoting a letter addressed to Motala from the Master’s office.

The Master was reported as saying that “persons appointed have unblemished characters and can be relied upon to deal with the Master’s office with absolute honesty”.

A letter addressed to Motala from the Master’s office stated that evidence given under oath by him regarding his real name and criminal record conflicted with documentation from the department of internal [home] affairs.

Motala apparently failed to disclose at least one count of theft and 93 counts of fraud, and denied having a criminal record.

Documents also revealed that Enver Mohammed Motala was given permission by the department to change his name from Enver Mohamed Dawood, who he was known as before 1981.

When questioned by the Master, Motala denied being the same person as Dawood, with whom he shares both an ID number and a birthday, according to the report.

Other factors contributed to the stripping of Motala’s status.

The report reveals that the Master was concerned by the conduct of Pamodzi liquidators, including “the cessation of mining activities, accounting for the gold from the mines, the dismantling and removal of mining equipment, and the poverty and destitution of mine employees”.

The Master was also concerned by the payment of R3 million to Aurora in February last year “by you or SBT (Motala’s company)”.

Motala reportedly maintains the transfer was to assist Aurora with outstanding wages and salaries of mine employees.

The justice department fired Aurora liquidators Enver Motala and Gavin Gainsford in May to “safeguard the integrity of the liquidation process”.

Motala and Gainsford were part of a group of six liquidators jointly appointed to manage the assets of Pamodzi Gold mines in Springs, on the East Rand, and Orkney in North West.

The liquidators let Aurora Empowerment Systems – which is headed by former president Nelson Mandela’s grandson, Zondwa, and President Jacob Zuma’s nephew, Khulubuse – make a bid for the mine, but Aurora failed to pay miners and reports emerged of the mine’s assets being stripped.

Today, Solidarity welcomed the removal of Motala from the panel, insisting that a criminal investigation be initiated as well.

Spokesperson Gideon du Plessis said that both Solidarity and the National Union of Mineworkers had been calling for a formal judicial investigation for 18 months.

“Motala has, in the meantime, also been summonsed to testify before the Master of the North Gauteng High Court in the inquiry into Aurora in terms of sections 417 and 418 of the Companies Act,” he said.

“It’s high time that he answered for his share in the Aurora crisis.”

Solidarity had brought an application before the High Court in Pretoria to have Aurora liquidated as part of its claim for R3.1 million in unpaid wages to workers at the two mines.

The matter would be heard on October 3.

China Africa Precious Metals has agreed to buy the Pamodzi Orkney gold mine for R150 million subject to conditions and has set aside R525 million to rejuvenate the mine and to erect a new gold processing plant.

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