Johannesburg, South Africa — MININGREVIEW.COM — 11 September 2009 – SOUTH Africa’s Industrial Development Corporation (IDC) is applying for the liquidation of Pamodzi Gold which, if successful, clears the way for a full forensic investigation into the way the suspended company was managed.
Reporting this development, Miningmx.com said the IDC was exposed to nearly R300 million in loans and interest owed by Pamodzi Gold. It added that the basis of the IDC application was the suretyship agreements Pamodzi had with the state-owned financier, but had not honoured.
Trade union Solidarity said the IDC had submitted the liquidation application for the holding company after all of its operating subsidiaries had been put into provisional liquidation earlier this year when Pamodzi ran up debts of some R1.5billion.
“It now offers the liquidators the opportunity to properly investigate the flow of funds in and between the various entities of the Pamodzi group. Pamodzi already owes the IDC about R200 million, and it is important for the IDC to know what has happened to the money,” said Solidarity deputy general secretary Gideon du Plessis. “The application is expected to be heard in the North Gauteng High Court on Friday,” he added.
“If Pamodzi Gold is liquidated, that’s the end of the whole Pamodzi saga,” said a source quoted by Miningmx.com.
South Africa’s Financial Services Board (FSB) is investigating Pamodzi Gold share trades around 23/24 October 2008 for evidence of insider trading. This was the time when Pamodzi management told the market it had secured R400 million in funding, sending the shares soaring.