Mungo Soggot
Alexkor, the state diamond producer, is=20 seeking a new head after the resignation of=20 its managing director amid severe tensions=20 over the struggling mine’s privatisation.
A representative of the Ministry of Public=20 Enterprises, Wandile Zote, said this week=20 that JD Vermeulen, the managing director,=20 had resigned for health reasons. However,=20 it is understood that Vermeulen has been=20 threatening to stand down for some time=20 because of mounting political turmoil=20 surrounding the mine’s privatisation.=20
The mine’s management is understood to have=20 clashed with the ministry over its=20 restructuring plans. Public enterprises has=20 been accused of lacking direction over its=20 Alexkor plans, and is believed to be keen=20 to reach a final decision on the mine’s=20 sale by the year-end. Vermeulen was=20 unavailable for comment this week.
Earlier this year, a committee set up to=20 handle the mine’s privatisation suspended=20 the process, declaring a dispute with the=20 government. The committee included=20 representatives from the company, labour=20 and the provincial government. It was=20 reported that the committee was angered by=20 the Minister of Public Enterprises Stella=20 Sigcau’s refusal to heed its advice on=20 corporate governance issues.
Plans for the mine’s privatisation have=20 also been complicated by local Northern=20 Cape politics. Local politicians are keen=20 for their region to benefit from any sale.=20
Vermeulen also had to confront an=20 increasingly poor performance by the mine,=20 which has been hit by widespread theft and=20 smuggling. The mine has asked diamond giant=20 De Beers to help beef up its security.