1. The settlement agreement reached between Government, Alexkor and the Richtersveld Community comprised of the following obligations:
Only R200 million was provided to the Alexkor Richtersveld Mining Company Pooling and Sharing Joint Venture (PSJV) as recapitalization loan to resuscitate the diamond operations following the protracted legal proceedings.
R200 million is a loan and is repayable, to date the PSJV has made payment of R14 million.
2. The PSJV is an unincorporated entity and does not qualify as a national public entity or a national government business enterprise based on the definition of the two by the PFMA namely the PSJV is not juristic entity nor under the ownership control of the national executive.
Given that the PSJV is not a public entity that it could not be listed in either Schedule 2 or 3 of the PFMA. Section 3 of the PFMA provides that the PFMA applies to departments, public entities listed in Schedule 2 or 3, and constitutional institutions. The PSJV is none of these and the PFMA does not apply to the PSJV itself in its own name.
3. Despite the PJSV not being subjected to the PFMA by virtue of its arrangement, the department referred the matters of financial misconduct, corruption and mismanagement to the Special Investing Unit (SIU). On 10 December 2021, the President Cyril Ramaphosa signed the proclamation authorizing SIU to investigate affairs of Alexkor SOC which extend to the PSJV.