REPORT OF THE SUB-COMMITTEE OF THE PC: PUBLIC ENTERPRISES

Terms of reference were:

• Understanding the nature of the women's group concerns
• Facilitating a consensus seeking process
• Meet with all the stakeholders concerned

The delegation met with the following stakeholders:

1. Women's Groups

2. MDDC

3. ADF

4. Alexco

Meeting with groups separately. Meeting with all groups.

Our focus areas in interacting with all the stakeholders was:

(a) A brief outline about organisation;

(b) Involvement in the project;

(c) The problems; and

(d) The way forward

All the organisation were established within the context of involving the community of Alexco in the mining project. This took different forms as reflected by these structures/organisations, and all of them in the context of BBBEE.

It must be noted that some of them had no clear understanding of their involvement, as they became part of the project, let alone understanding the mining industry. This lack of understanding we submit as the task team contributed to the problems that these organisations continue to grapple with.

The many legal and technical contractual agreements and documents they signed in their possession had no meaning, as they did not understand them, or are even able to read them. Many a time they relied on being reported to by those they appointed to represent them in the management committee who seldom gave report backs to the rest of the members.

• Not receiving any proceeds from the projects
• Not receiving financial statements
• Decision taken on their behalf

• Potential in the project and hence they want to see it operating
• Active participation in the project especially in decision making

Having listened to all the groups, the task team made the following observations:

1. Lack of understanding/ignorance of the project;

2. No knowledge of the contents and implication of agreements signed;

3. Lack of accountability and transparency;

4. Sub-contractors were/are in control of the projects;

5. All groups not empowered to be able to run the project, in particular on mining generally - hence contractors did as the wished;

6. No plan of action on the running of the project; and

7. Project still has potential.

WE RECOMMEND THAT:

• A Sub-contractor be identified that will continue with mining as the contract still has 3 years;
• An intensive training programme for all the groups in the areas of the agreements and on the project itself;
• A clear business plan be developed and understood by all;
• All relevant committees be established and lines of communication and accountability
• spelt out; and
• Auditors' financial statements from the sub-contractors who worked on the mine. We believe this will assist in clarifying accusations of who owes whom.

We wish to thank Alexco's CEO, Rain, for the support he provided during our visit, the stakeholders for their co-operation and openness in raising their concerns, as well as their confidence in the PC: Public Enterprises. Their commitment to seeing that the project continues was proof enough for the task team to believe that the Alexco community, a represented by the stakeholders rely on this project for their sustainable livelihood and that to them Alexco is hope. It must be noted that the project is at a halt.

We believe the implementation of these recommendation will bring life to the people of Alexco and BBEE will find its expression.