The Department of Public Enterprises (DPE) states that as of 6 March 2020, R5,9 million has been paid out towards the cost of the retrenchments. A further R3,8 million is still outstanding and is expected to be settled “over the next three months” says the DPE’s communication office.

The mine, which exists as a Pooling and Sharing Joint Venture (PSJV) between state-owned entity Alexkor SOC and the Richtersveld Mining Company is, as of September 2019, under administration due to its poor financials allegedly at the hands of rampant corruption under PSJV Chief Executive Officer (CEO), Marvin Carstens. The embattled CEO has been suspended pending an investigation into allegations of corruption and maladministration.

DPE blames PSJV’s poor financial state and struggle to pay out retrenchment packages on the decline “in diamond production owing to adverse sea conditions amongst other factors”. Contractor, diamond diver and community advisor, David Pells, on the other hand, firmly believes corruption alone is to blame.

The Department of Public Enterprises says the retrenchments are unfortunate but maintains regular meetings are being held with labour unions regarding outstanding packages. 

History of the mine

In 2003 the Supreme Court of Appeal delivered a landmark judgment that restored the Richtersveld Community’s right to the mineral resources of the land and ordered that Alexkor must compensate the people for damage done. 

In 2011, a PSJV between the community and the mine was formed as a result. OFM News has been informed that Richtersveld is yet to benefit from the initiative, something which the mine and the Northern Cape government denies.

Previously, the Deputy Director-General of Public Enterprises, Kgathatso Tlhakudi, told OFM News PSJV does not qualify for a bail-out. Tlhakudi says this is due to a plethora of reasons, including the fact that the mine is not technically, a state-owned company, but rather a joint venture in which the state is merely a partner.

“The joint venture does not qualify for direct support and also because this is a business, it must be sustainable on its own. So that’s the challenge that we are sitting with. We also believe, were it not for other things that are going on at that mine, including allegations of corruption, instances where good performing contractors were terminated without adequate reason, the business would not be in the situation that it is in”. Tlhakudi concludes his interview with OFM News by asking how the department justifies pumping funds into a mine that is not entirely state-owned, but rather a joint venture with a state-owned entity.

Tlhakudi’s statements were made before Alexkor was placed under administration.

OFM News