Word of the ousting comes on the back of a briefing before Parliament’s Portfolio Committee on Public Enterprises virtually, in May 2020, in which the former Alexkor administrator, Lloyd McPatie, revealed that Carstens, the then Chief Executive Officer of the Pooling and Sharing Joint Venture (PSJV) formed by Alexkor SOC and the Richtersveld Mining Company, had been suspended three months prior to the sitting, following an investigation into the mine by auditing firm, Gobodo Forensic and Investigative Accounting. 

Sources on the ground reveal Carstens is in the process of disputing his termination. The former mine boss who was found guilty of overseeing shady dealings at the mine, isn’t the only thorn in Alexkor’s side.

Alexkor has reportedly also terminated its controversial contract with the Gupta-linked Company, Scarlet Sky Investments (SSI). The termination has not been without its own fair share of drama. 

The sales and marketing contract came under scrutiny in the #GuptaLeaks series by the Mail and Guardian’s Amabhungane and the Daily Maverick’s Scorpio teams in 2017. 

The Gobodo report found the contract, which was awarded in 2014, and renewed in 2016 for a five-year period, to be irregular in light of the fact that SSI did not have a diamond trading licence. Despite queries sent a week ago, Alexkor and the Department of Public Enterprises are yet to confirm the terminations.

The OFM News team is in possession of a letter from Hector North Inc Attorneys, on behalf of Scarlet Sky Investments (SSI), which confirms word on the ground that the relationship between the respective parties has soured. 

In it, the law firm says “the agreement entered into by and between you and our client on 6 October 2016 remains of full force and effect and our client requires compliance with the terms of the agreement”. Hector North Inc further chastises Alexkor for informing subcontractors of the termination, “we understand that you have advised the land, beach, shallow and marine mining contractors that you have terminated the agreement with our client. Your conduct is unlawful and the agreement has not been lawfully terminated and remains binding”. 

Hector North Inc Attorneys has declined to comment on the matter to OFM News, stating in an email responding to questions, that they “are not authorised to comment on the contents of the email under reply”.

Carsten’s axing comes on the back of the resignation of PSJV Company Secretary Raygen Phillips recently. In the internal memorandum leaked to OFM News, the Chairperson of the venture and Chief Executive Officer (CEO) of Alexkor SOC, Lemogang Pitsoe, announced over a week ago that Phillips stepped down in consideration of her own personal career development plans. Her resignation came into effect on Monday, 24 August. “We wish her well with her future endeavours and would like to thank her for her contribution to the PSJV,” concludes Pitsoe.

OFM News