It’s a matter of time before former BCL mine board and management face off with BCL Provisional Liquidator, Nigel Dixon-Warren and his company, KPMG over the liquidation report that he produced.
BG News has reliably learnt that former members of board and management recently met and mapped the way forward on how to approach and bring the matter to finality.
The former board and management are aggrieved that the liquidator’s report implicated them. They say the report is factually and grossly incorrect and reserve their rights on what decision to take to ensure that any report reflects accurate facts regarding the liquidation.
At the time of going to press, they were still determining the many options available at their disposal. The BCL mine and its assets were placed under liquidation in 2014 and Dixon – Warren was appointed the Provisional Liquidator.
Last month, KPMG released a 147 page report named BCL LTD- IN LIQUIDATION (UAHGB-000202-16) Report of the provisional Liquidator in terms of Section 448 of the Companies Act (Cap 42:01) dated 5th October, 2017.
Since its release, the KPMG report has been a subject of debate in many platforms. Some welcomed it while others said it has many inaccuracies and loopholes and will likely be challenged in court.
Speaking to BG News, the group’s spokesperson and former board chairman, Dr Akolang Tombale said that, “in a nutshell the Provisional Liquidator’s report is inaccurate and misleading” as it focused in the last four years and not life time of the BCL mine operation.
“The report appears and, or gives the impression that the challenges that led to the collapse of the mine happened in the last four years”. This is not the only matter where the former board and management may want to clear their names.
The other issue is with respect to Norilsk, which in its legal battle against government to recover both business and revenue lost over the sale of its Nkomati assets, has cast the net wide to include all former board and executive management members it accuses of reckless trading under the Companies Act.
On this one government appears to be taking charge as the board and management acted in the best interest of the business supervised by the responsible ministry.
On 9th October, 2017 Norilsk through its attorney of record, Collins and Newman, issued a notice to board members then led by Dr Akolang Tombale, and BCL management led by Daniel Mahupela, notifying them that Norilsk intends to take legal proceedings against them this week and that they are joined together in civil action with government, Minister of Mineral Resources, Green Technology and Energy Security, and the Minister of Finance and Economic Development.
Collins and Newman states that they act on behalf of Norilsk Nickel Mauritius (NNM), Norilsk Africa Property Limited, Global Mining Resources Inc, Lax and Trading Inc, all companies in the Norilsk group of companies.
They further inform both the board and management members that at the time when they held office from January 2015 the businesses of BCL and BCL International were carried out recklessly.
In particular, BCL and BCLi entered into transactions with Norilsk- the Nkomati and Tati transactions- pursuant to which they have incurred substantial liabilities to Norilsk group of companies.