UPDATE 1-South African union files case against Samancor Chrome over alleged fraud

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JOHANNESBURG, Oct 2 (Reuters) – One of South Africa’s largest mining unions filed a court case on Wednesday against privately-owned manganese and chrome producer Samancor Chrome relating to alleged fraud.

Human rights lawyer Richard Spoor, who is representing the Association of Mineworkers and Construction Union (AMCU) said the case related to fraud and profit shifting worth hundreds of millions of dollars.

Samancor, the second largest chrome producer in the world, declined to comment immediately.

“The company is stealing from the workers,” AMCU President Joseph Mathunjwa said on the sidelines of a mining conference in Johannesburg.

AMCU has an interest in Samancor Ltd., through its members in the Ndizani Workers ESOP Trust which indirectly owns 5.6% of Samancor.

The court papers allege the directors engaged in corrupt dealings and estimated these caused a loss to employees from the Ndizani Workers ESOP trust to the value of $100 million.

The AMCU rose to prominence during labour unrest which led to the 2012 killing of striking mine workers at Lonmin’s Marikana mine. (Reporting by Tanisha Heiberg; Editing by Edmund Blair and Angus MacSwan)

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