Aurora liquidators want Motala to repay R3m

LIQUIDATORS of Aurora Empowerment Systems, which stands accused of running Pamodzi Gold's Grootvlei and Orkney mines into the ground, are now claiming R3-million from former liquidator Enver Motala.

LIQUIDATORS of Aurora Empowerment Systems, which stands accused of running Pamodzi Gold's Grootvlei and Orkney mines into the ground, are now claiming R3-million from former liquidator Enver Motala.

Motala was a liquidator of the Pamodzi estate, and played a key role in ensuring that Aurora remained the preferred bidder for the mines, despite serious concern about its finances, according to court transcripts of a hearing on the Pamodzi debacle.

Aurora liquidator Christiaan de Wet said in an affidavit that Motala was paid R3-million from Aurora's account when the company was already insolvent. Motala gave Aurora a loan to pay outstanding salaries and an "urgent" creditor on February22010, and was repaid in several tranches by May that year, the application stated.

Motala said on Friday that he had not yet been served with papers, and he would "vigorously" oppose the application.

According to Motala, the loan was made after a request by UniCredit Bank, a major Pamodzi creditor, and the money could be used only to pay R2.8-million in wages and salaries and a R200000 Rand Water bill.

"I did not earn any interest on this loan. It was for a good cause. This application is preposterous, to say the least," Motala said.

The decision to name Aurora preferred bidder was not his alone, and was agreed to by Pamodzi's major creditors, including UniCredit Bank and the Industrial Development Corporation, he said.

Consultants Fazel and Solly Bhana, who ran the Aurora mines, are also named as respondents in the Motala application, which asks the court to find Motala, his business SBT Trust and the Bhanas individually or collectively liable for repaying the money.

Last month, the North Gauteng High Court ordered Bhana family members, including Fazel and Solly, and two associates to repay R15.5-million that was paid to them in 2009 and 2010.

The court found Aurora repaid loans from the Bhanas and their associates when it was already insolvent, meaning other unsecured creditors were discriminated against. Liquidators have argued that the company has been insolvent since inception, as it never had any capital despite winning a bid to buy Pamodzi's assets for R690-million.

Motala said he understood the application against him "has no basis in law".

"I am not the Bhanas. I have the financial muscle behind me, I have a legal background and I will hire a team of legal experts. I will fight this all the way."

The Bhanas' associates, Mohamed Firoze Limbada and his wife, Zeenat Ebrahim Laher, applied this week to have the court order set aside. Limbada was ordered to repay R1-million and Laher R7.1-million.

A sheriff tasked with attaching the Bhanas' assets last week to repay their part of the debt found they had vacated the Houghton home listed as their address in court papers. It is understood new warrants were issued, and are likely to be executed next week.

The legal battle to find money to repay about R28-million in outstanding pay to 5300 former Pamodzi workers and millions more to other creditors, including R54-million to Eskom, is set to drag on for some time.

Another court case is set for March, when the liquidators will attempt to hold Aurora's directors and managers personally liable for damages of up to R1.7-billion.