Enough cash to pay miners' orphans, says curator

There is enough money under the control of the Bophelo Beneficiary Fund curator to pay benefits due to orphans of mine workers for now.

This is according to the fund’s curator, Juanito Damons of RWL Attorneys. Damons has defended his decision to allow money recovered for the fund, which the Financial Services Board (FSB) placed under curatorship in June, to be deposited in VBS Mutual Bank.

At the time that Vele Investments, VBS’s 53% shareholder, bought Bophelo’s parent company, Mvunonala Holdings, Damons said he had no reason to doubt "the solvency and liquidity of VBS".

Under that deal, R370m was credited to the Bophelo Benefit Services account at VBS, as "partial recovery of the shortfall" in the fund, Damons said. Another R40m was paid to the fund’s beneficiaries. The R410m payment resulted in a recovery of more than 88% of the shortfall that existed in the fund.

The Bophelo Fund holds money for the children of deceased Anglo Platinum mine workers. A lump sum death benefit is transferred to the fund for beneficiaries under 18.

ziadyh@businesslive.co.za