Implats being probed for alleged violations of Mining Charter

A recent in-depth five part series reporting by The Citizen has led to the Bafokeng North-A Economic Forum (Banaef) appointing an independent firm, Executive Outcomes, to conduct a forensic audit into allegations that Impala Platinum Holdings (Implats) operations in the platinum-rich North West village of Luka, has failed to adhere to the principles of the Mining Charter.

Banaef – an umbrella body representing 72 local black-owned member companies in the platinum-rich Luka – said it was pleased to appoint the reputable Executive Outcomes to conduct the probe at Implats into lack of transformation and unwillingness by management to implement principles of the Mining Charter.

According to Banaef chair Ronny Juris Mekgwe, the multi-billion-rand worth Implats, has for years been mining platinum in the Rustenburg platinum belt, with Luka village hosting the company’s operations.

Mekgwe said despite the Bafokeng community of rural Luka having leased their lush land to Implats, the community lived in poverty.

ALSO READ: Implats: Community unhappy over ‘nonadherence to equity procurement’

While Implats budgeted billions of rands for local community development – in line with the Mining Charter – residents of Luka daily woke up to poorly maintained dusty streets with a high level of unemployment.

Claiming to be short-changed by Implats, they said they failed to implement principles of the Mining Charter – requiring mining companies to develop residential villages situated around operations and adhere to preferential procurement – Banaef members have had several encounters with the mining management, without any positive results.

In a recent encounter, Banaef gave the mine seven days to respond to a set of grievances including, that:

• All contractors falling outside Tier 1, be merged with local small, micro and medium enterprises, for enterprise development purposes and if possible, partnerships be established;
• A forensic audit be conducted;
• There be a breakdown explanation of Impala’s R8.9 billion annual procurement spend, with local companies demanding participation in the R7.5 billion reserved for white companies.

Implats Rustenburg CEO Munroe, has defended the mine against charges of racism.

Responding to questions by The Citizen, Munroe said the company had “a cross-section of professional and subject matter experts who dissect the award procurement orders”, with race not being an issue.

ALSO READ: Mining charter ‘fails the people’

“All companies are treated equally,” he said with the exception of mine host communities who benefit from our preferential procurement and localisation policies.

In a letter by Executive Outcomes chair Eeben Barlow to Implats, he said he was appointed by Banaef, “to plan, coordinate, manage, and oversee the forensic audit and give as well as give the requisite timeous feedback”.

Barlow said: “Whereas we fully appreciate the inconvenience a forensic investigation may cause, we undertake to ensure the minimal disruption to both your professional and private life, and to conclude the matter as rapidly as possible.”

– brians@citizen.co.za