Claims of Gupta family interference very concerning to mining industry
by Wire Staff,
2016-03-17 16:11:02.0
THE Chamber of Mines says allegations of the Gupta family’s involvement in the selection of cabinet ministers are of serious concern to the South African mining industry, which it says is in crisis.
"The Chamber notes that allegations of links of the minister of the Department of Mineral Resources to the Gupta family‚ and allegations that some of his special advisers are linked to the boards of the Gupta family companies‚ is making the mining sector ask questions about this matter‚" the chamber said.
It added: "Most concerning to the Chamber are reports that mining companies are being placed under undue pressure via inappropriate section 93 notices for alleged failure to meet the ownership requirements of the Charter when the subject matter is presently before the court for a ruling‚ or section 54 mine safety stoppage notices‚ given the damage these can do to the industry and investor confidence."
The chamber said it believed the country and the mining industry should be concerned about these issues. "The South African mining sector is in crisis. The industry requires policy stability and certainty and fair and transparent implementation of the laws from a licensing perspective. Allegation of corruption and undue political influence in licensing decisions are not in the interests of the industry or the country.
"Given that the mining sector still remains a key window on the South African economy through which the global investor community views the country and its investment rating status‚ these are concerning allegations‚" the chamber added.
It said it would continue to engage all relevant parties‚ including the mineral resources minister‚ so that matters negatively affecting the mining sector and the negative perceptions affecting investment in the country could be addressed.
The chamber was the second business body to raise concern on Thursday.
Earlier on Thursday, Business Leadership SA urged President Jacob Zuma to answer Mr Jonas’s statement.
"The statement by … Jonas that he was offered the finance minister’s job by the Gupta brothers marks a grave threat to our country’s constitutional democracy," Business Leadership SA (BLSA) said. "The statement requires a decisive response from President Zuma, who alone has the prerogative to appoint both ministers and deputy ministers. If other senior public office bearers have had similar approaches now is the time for them to take the people of SA into their confidence."
The BLSA statement was jointly issued by its president, Saki Macozoma, chairman Bobby Godsell and CEO Thero Setiloane.
Mr Jonas said he was offered the position just before Nhlanhla Nene was fired as finance minister in December. The Gupta family said Mr Jonas’s statement was not true and referred to it as a political point-scoring exercise.
BLSA said that the government, critical institutions and citizens must choose between "being a society governed by law or one captured and directed by private interests".
TMG Digital, with Ntsakisi Maswanganyi
Picture: THINKSTOCK
THE Chamber of Mines says allegations of the Gupta family’s involvement in the selection of cabinet ministers are of serious concern to the South African mining industry, which it says is in crisis.
"The Chamber notes that allegations of links of the minister of the Department of Mineral Resources to the Gupta family‚ and allegations that some of his special advisers are linked to the boards of the Gupta family companies‚ is making the mining sector ask questions about this matter‚" the chamber said.
It added: "Most concerning to the Chamber are reports that mining companies are being placed under undue pressure via inappropriate section 93 notices for alleged failure to meet the ownership requirements of the Charter when the subject matter is presently before the court for a ruling‚ or section 54 mine safety stoppage notices‚ given the damage these can do to the industry and investor confidence."
The chamber said it believed the country and the mining industry should be concerned about these issues. "The South African mining sector is in crisis. The industry requires policy stability and certainty and fair and transparent implementation of the laws from a licensing perspective. Allegation of corruption and undue political influence in licensing decisions are not in the interests of the industry or the country.
"Given that the mining sector still remains a key window on the South African economy through which the global investor community views the country and its investment rating status‚ these are concerning allegations‚" the chamber added.
It said it would continue to engage all relevant parties‚ including the mineral resources minister‚ so that matters negatively affecting the mining sector and the negative perceptions affecting investment in the country could be addressed.
The chamber was the second business body to raise concern on Thursday.
Earlier on Thursday, Business Leadership SA urged President Jacob Zuma to answer Mr Jonas’s statement.
"The statement by … Jonas that he was offered the finance minister’s job by the Gupta brothers marks a grave threat to our country’s constitutional democracy," Business Leadership SA (BLSA) said. "The statement requires a decisive response from President Zuma, who alone has the prerogative to appoint both ministers and deputy ministers. If other senior public office bearers have had similar approaches now is the time for them to take the people of SA into their confidence."
The BLSA statement was jointly issued by its president, Saki Macozoma, chairman Bobby Godsell and CEO Thero Setiloane.
Mr Jonas said he was offered the position just before Nhlanhla Nene was fired as finance minister in December. The Gupta family said Mr Jonas’s statement was not true and referred to it as a political point-scoring exercise.
BLSA said that the government, critical institutions and citizens must choose between "being a society governed by law or one captured and directed by private interests".
TMG Digital, with Ntsakisi Maswanganyi
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