The south African Government might shut down Central Rand Gold (CRG) owned by controversial businessmen Kenny Kunene and Gayton McKenzie.
The two might see the company’s mining license be revoked t, this according to the Sunday Times.
It is alleged that the South African moguls did not follow the correct procedure in attaining the license and have broken on the London and Johannesburg stock exchange but not revealing this fact to shareholders at stake. The government planned to shut Central Rand Gold (CRG), which has a mine based near Soweto, down this week.
There is a gold reef allegedly worth billions yet the CRG still received a Section 47 notice from the Department of Mineral Resources on August 5 and is in danger of being suspended having its mining listen cancelled by the Minister of Mineral Resources.
The issue seems to be CRG’s willingness to change the situation that pertain to its mining right’s despite the fact of being informed of the circumstances since the beginning of 2009. Issues surrounding social, labour and environmental programmes have not fully been attended to.
The Minister Susan Shabangu’s spokesperson Bheki Khumalo confirmed with The Sunday Times that CRG’s final deadline ends this week.
Experts report that Kunene and McKenzie whom were responsible for the department that handled these issues, had no mining experience, however were paid a minimum of R13.5 million in shares, salaries and bonuses after having convinced the poor communities in Soweto to offer the mine their support.
Kenny Kunene and Gayton McKenzie salaries allowed them to earn R4.7 million a year.
When asked about these allegations, Kenny Kunene had refused to comment, claiming that he is no longer involved in the mine which bears some truth as Kunene has been busy with other business opportunities such as his ZAR Franchise and New Money Recording Label.
McKenzie on the other hand was angry when suggestions were made that the pair should be held financially responsible if were to lose its mining rights.McKenzie told The Sunday Times, “R13.4 million might be a lot for you, but it’s not a lot for me. I didn’t hold a gun to anyone’s head and say ‘pay me that’. It’s what I’m worth”.
Godfrey Makunene told the paper, “They decided to enrich themselves. Police must investigate”, community leaders say the two ex convicts should carry the blame
The pair have been accused of a allegations that ultimately had to do with how they spend their money.
Could this be a plot to bring them down or have these ex convicts been unlawful once again ?