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The Industrial Development Corporation is still holding more than R100-million belonging to the mining rich Bakubung ba Ratheo community in Ledig village near Rustenburg, but last weekend’s inauguration of Kgosi Solomon Monnakgotla gave the poverty-stricken residents renewed momentum in the longstanding push that the state financier releases the funds for purposes of local development.
The IDC had previously, in refusing to release the funds, alleged that the community’s commercial vehicles, the Bakubung Economic Development Unit and Bakubung Community Development Corporation, were “probably used to launder the funds that belong to the community” – which was disputed by the directors of the entities and the community’s financial advisors, Musa Capital.
IDC spokesperson Mandla Mpangase said this week that developmental finance institution has “no issue in releasing the funds” to commercial entities of the community, which are contracted on behalf of the community. “However, it is important that we satisfy ourselves that the internal disputes are resolved as per the escrow agreement between the IDC, [Bakubung Economic Development Unit] and [Bakubung Community Development Corporation],” Mpangase said.
In terms of the Escrow agreement, the funds would be released on condition that there was stability within the community, including clarity on the issue of chieftaincy.
Ahead of the ceremony a group of disgruntled members of the royal family sought a court interdict on the grounds that one of their own should be the rightful Kgosi. In the court papers they also accused the government under Premier Supra Mahumapelo of interfering in the running of the royal family’s affairs.
However, the North West High Court dismissed the application.
The disgruntled group had stayed away from enthronement ceremony, however, a community leader who could not be named because they did not have mandate to speak to the media told City Press that efforts will be made to bring all royal family members on board, including those who lost the in court.
A major community development initiative would also be announced in the coming weeks.
The contest for the funds, a part of the more than R700 million raised from the community’s 2007 equity stake in the so-called ANC mine, Wesizwe, saw Ledig village go up in flames as disputes tore the royal family and the residents apart.
Politicians and businesspeople, among them the founders of Wesizwe, were mentioned as ringleaders fuelling tensions on the sidelines in a bid to wrest control of the 30 000-strong community’s mining wealth for personal gain.
Wesizwe boasted a contingent of prominent politicians in its formation in 2004 including former ANC MP Lorna Maloney, Thuthukile Skweyiya, the wife of former minister Zola Skweyiya, former ANC MP James Ngculu and former Wesizwe executive Mlibo Mgudlwa.
In an affidavit signed in July 2011 a community leader accused Ngculu and Mgudlwa of being sponsors of the violence and the torching of properties that gripped the village a year earlier. The two denied the allegation.
In 2014 the community came close to resolving its issues when former chairperson of the North West standing committee on public accounts mediated a peace agreement, however, it later collapsed.
Some members of the royal family were linked with a group of businesspeople, including a taxi boss whose name is known to City Press, who had promised to negotiate the release of the community’s funds from the IDC for a commission fee of 10% of the more than R100 million.
On Saturday as Kgosi Monnakgotla ascended to the throne Wesizwe’s market value stood at R800 million, with its share trading at 50 cents.
The Bakubung hold a 4% equity stake in mine – scheduled to start operating in 2021 – down from 33% in 2007 when they acquired the shares, then valued R9.
“We will work with everyone to develop and build Ledig, even with those who did not agree with us we will keep engaging in order to bring them on board,” Monnakgotla told the hundreds of people attending his inauguration ceremony, including traditional leaders in the North West and members of the provincial government executive.
