Mon Mar14, 2011 07:17:12 AM
By Allan Seccombe
MHLATUZE Bay Coal Administrators says it has been advising its members since July last year of the misappropriation of funds under its control, one of the reasons the Department of Mineral Resources gave for its decision to strip Mhlatuze of its responsibilities in managing a four-million-ton-a-year Quattro export programme at Richards Bay.
The department, citing misappropriation of at least R5,5m from Mhlatuze and other irregularities, awarded the administration of Quattro, intended to benefit junior, black-empowered coal companies, to Ubu Logistics, a subsidiary of Alec Erwin’s Ubu Investment Holdings.
Mhlatuze was unavailable for comment on Tuesday when the department made its decision public. It said on Friday it wanted to correct inaccurate implications in various media reports.
The department said Quattro had mainly benefited traders and large mining companies, not junior, empowered coal producers.
Mhlatuze said in a statement last week: " Mhlatuze does not have authority over, and is in no way responsible for, the process of allocation of export tonnage entitlement through Richards Bay Coal Terminal to Quattro users."
It said comments related to "possible fronting and the involvement of trading companies in the supply chain, or the matter of members not mining their own coal but trading coal from other companies, refer to aspects of the programme which were never in the ambit of (Mhlatuze) but were the responsibility of the Coal Industry Task Team, an oversight committee chaired by the (department)".
Mhlatuze has appointed a consultant to conduct a full forensic audit into the misappropriation of funds by a former employee. It instituted civil and criminal proceedings against the unnamed employee, who has left the company. It said it had kept interested parties abreast of developments. (BusinessDay)
By Allan Seccombe
MHLATUZE Bay Coal Administrators says it has been advising its members since July last year of the misappropriation of funds under its control, one of the reasons the Department of Mineral Resources gave for its decision to strip Mhlatuze of its responsibilities in managing a four-million-ton-a-year Quattro export programme at Richards Bay.
The department, citing misappropriation of at least R5,5m from Mhlatuze and other irregularities, awarded the administration of Quattro, intended to benefit junior, black-empowered coal companies, to Ubu Logistics, a subsidiary of Alec Erwin’s Ubu Investment Holdings.
Mhlatuze was unavailable for comment on Tuesday when the department made its decision public. It said on Friday it wanted to correct inaccurate implications in various media reports.
The department said Quattro had mainly benefited traders and large mining companies, not junior, empowered coal producers.
Mhlatuze said in a statement last week: " Mhlatuze does not have authority over, and is in no way responsible for, the process of allocation of export tonnage entitlement through Richards Bay Coal Terminal to Quattro users."
It said comments related to "possible fronting and the involvement of trading companies in the supply chain, or the matter of members not mining their own coal but trading coal from other companies, refer to aspects of the programme which were never in the ambit of (Mhlatuze) but were the responsibility of the Coal Industry Task Team, an oversight committee chaired by the (department)".
Mhlatuze has appointed a consultant to conduct a full forensic audit into the misappropriation of funds by a former employee. It instituted civil and criminal proceedings against the unnamed employee, who has left the company. It said it had kept interested parties abreast of developments. (BusinessDay)
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