State Capture Commission to hear testimony from Alexkor contractor

SABC News State Capture - State Capture Commission to hear testimony from Alexkor contractor

The Commission of Inquiry into State Capture is expected to resume on Monday and will hear testimony from Gavin Craythorne, a long term contractor to Alexkor and to a mining Joint Venture between Alexkor and the Alexander Bay community.

Commission probes joint venture between Alexkor and Alexander Bay:

In 2019, state diamond mining company Alexkor told Parliament that it would run out of money. Alexkor also owns property in Alexander Bay, which it maintained at a cost of R7.5 million per year while it only collects rent of R3.5 million from tenants.

It also paid R6 million for water and electricity, which it does not recover from tenants.

The company’s former administrator, Lloyd McPatie, recommended to government that Alexkor as well as the Pooling and Sharing Joint Venture be liquidated.

”I propose as a department that we need to look at liquidation of Alexkor because the company is not a going concern and it cannot generate cash flows to trade itself out of the current situation. And in terms of the Section 22 of the Companies Act, the company is trading recklessly because it cannot meet its financial obligations for the next 12 months. The PSJV itself is technically in solvent.”

The Commission will also hear Eskom-related evidence from acting Senior Manager of Fuel Resources, Dr Ayanda Nteta.

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