The National Union of Mineworkers (NUM) is threatening to throw a spanner in Aurora Empowerment Systems' plans to reverse-list a R4.5 million deal through ailing IT and consultancy company Labat Africa.
NUM spokesman Lesiba Seshoka attacked Aurora Empowerment for “not knowing what it was doing” by first trying to buy gold mines and now looking at buying an IT company, especially as 24 000 mineworkers have not been paid for the past two months.
“We are very disappointed by Aurora Empowerment; especially that it is being led by such 'well-heeled' people. However, they have proved to be amateurs and they do not care about the poor or the workers,” he says.
Seshoka says that, while the union hasn't decided on a definite course of action yet, it could look at finding a way to oppose the deal as that money could be used to at least pay part of the salaries owed to the workers. He says the average mineworker on the Aurora-owned East Rand mines is paid around R2 500 per month.
Neither Labat Africa nor Aurora Empowerment responded to ITWeb's queries this morning.
Brian van Rooyen is Labat Africa's CEO; Aurora Empowerment is headed by Khulubuse Zuma, a nephew of president Jacob Zuma; and Zondwa Mandela, a nephew of Nelson Mandela, is its managing director.
A Stock Exchange News Service announcement issued by Labat Africa earlier this week says the deal is being done subject to meeting Johannesburg Stock Exchange terms and conditions.
In terms of the deal, Aurora Empowerment will buy 45% of Labat Africa shares and then make a compulsory offer to the rest of the shareholders.
The deal does not include Labat Africa's wholly-owned subsidiary, South African Micro Electronic Systems (Sames), Africa's only manufacturer of commercial semi-conductors. It appears from the announcement that Sames will be listed separately in the near future.
Labat Africa found itself embroiled in its own controversy four years ago, when one of its divisions - Labat Traffic Solutions - was forced to cancel R30 million worth of traffic fines in Cape Town. It then lost the contract to manage that city's traffic systems and back-office processes.
Labat Africa's shares were trading unchanged in mid-morning trade at 38c.
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