Page 6 - AMANGO 2017 CASE STUDY 2

P a ge | 5

this, our centenary year ahead, to everyone who is working for AMANGO during this turbulent period,
which has meant considerable restructuring in our business.

Sign:
Bruce Peters,
Board Chairperson -AMANGO GROUP PLC
4. FIVE (5) BOARD STRATEGIC DECISIONS (FOR YOUR ADVICE)

Political Risk Management Strategy

Finally, the new Mining Charter, first mooted in March 2016 has just been published by the South African
Mineral Resources Minister M. Zane. A news report is quoted as saying, ‘‘if the chamber of mines,
representing 90% of the industry by value, believes the new mining charter was published without

consultation, the charter is not going to survive. Previous charters failed to change ownership in the
industry and the minister’s response has been to stiffen the measures, instead of finding new solutions.’’
South Africa is not a dictatorship, it is a constitutional democracy –due process is followed in all
administrative action; and per the constitution, ‘’no one may be deprived of property except in terms of
law of general application, and no law may permit arbitrary deprivation of property.’’ The mining charter
itself is derived from Mineral Resources and Petroleum Development Act (MRPDA), which fully respects
the constitution.

Other experts say the Minister himself is ridden with conflict of interest as he is implicated in a resent
‘state capture’ report and a series of leaked emails which show he was appointed, not by the president of
South Africa, but by the Guptas, a controversial family, who hail from India, but have acquired South
African citizenship post 1994, allegedly through a corrupt relationship with the president of the country -
JZ. It is alleged that they are exploiting this relationship to acquire interests in the mining and other

sectors. This is worsened by the recent credit downgrade of the country to junk, following an
unpopular cabinet reshuffle. "The recently released mining charter is a negative for growth, investment
in the sector and job creation" says JP Morgan economist P. Montalo. ‘’It demonstrates the extent to
which the Gupta family is bent on infiltrating the mining sector, by pushing the minister to publish
regulations that purport to empower the Historically Disadvantaged South Africans (HDSAs), whilst
indeed, it was designed to enrich the Gupta’s, and further entrench their tentacles; from state capture, to
capture of the mining industry.’’

In the meantime, the new Board Chairperson Designate, Mr. S. Chamberlain, invited as part of his
induction programme, to join AMANGO’s 100 Year Centenary celebrations in South Africa, has had a
conversation with the Mineral Resources Minister who was also invited as guest of honour. The minister
implied that a vast majority of the new provisions in the Mining Charter were informed by research across

the industry in which the government found that companies were ‘’window-dressing’’ -a term used to

The CFO Case Study Competition Pack (Extended scenario)
www.charterquest.co.za | Email: thecfo@charterquest.co.za