This is according to a contractor, diamond diver and community advisor, David Pells. He spoke to OFM News after the mine paid salaries late last month because of its financial woes. This follows after other entities – such as Eskom and Transnet – have been making headlines for all the wrong reasons. Allegations of corruption, fraud and state capture are under investigation at some of the state-owned-entities. According to Pells, the mine – one of the main sources of employment in the poverty-stricken Namaqualand area – is planning to retrench about 300 mineworkers because it cannot meet its financial obligations.

In 2003 the Supreme Court of Appeal delivered a landmark judgment that restored the Richtersveld Community’s right to the mineral resources of the land and ordered that Alexkor must compensate the people for damage done. In 2011, a pooling and sharing joint venture (PSJV) between the community and the mine was formed. Pells says the government then put R200 million into this venture, a part of which he alleges was used to form a head office in Johannesburg that he claims has no purpose, other than cost the company R25 million a year to run. The contractor says the Richtersveld community continues to live in poverty, despite them owning the land and the mineral rights.

Pells says the state does not have the expertise to run the diamond mine. “There are too many political agendas behind it, it’s a very rich mine. So it’s like Eskom, it needs to be unbundled”. Everyone is getting robbed blind, maintains the contractor. He is adamant that the community must stand up for itself in this time. Reports indicate that the mine is indeed struggling financially, but the reasons as to why, have not been pinpointed. In 2018 revenue for the year dropped 46% to R409.1 million. The PSJV generated an operating loss of R14.2 million. What does remain clear is that the Richtersveld community is said to not be receiving their share.

In a message from Chairperson, Tshediso Matola – appointed in September 2018 – he states that “PSJV is operated within a sound governance framework and on commercial terms, through both oversight by the management of its activities and Alexkor Board representation in the PSJV Board. Alexkor has fulfilled most of the Deed of Settlement conditions and the remaining conditions will be addressed during the new financial year with the support of all the relevant stakeholders”. Matola took over from Hantsi Matseke who happens to be the current Chairperson of the Free State Development Corporation (FDC).

A spokesperson for the national Department of Public Enterprises, Adrian Lackay, said the department is not aware of the situation and urged community members to contact the department so their concerns could be addressed.

OFM News/Sazly Hartzenberg and Olebogeng Motse