Kebble takes extra time to consider paying DRD R37
Kebble takes extra time to consider paying DRD R37m
March 2, 2005
By Nicky Smith
Johannesburg - Brett Kebble, the chief executive of JCI, and his legal advisers would decide today whether to pay DRDGold R37 million in option fees dating back to a 2000 agreement or to take the matter to the constitutional court, he said yesterday.
Last Thursday the supreme court of appeals ruled against JCI and the company had until the close of business yesterday to pay the R37 million to DRD.
But DRD`s legal advisers said yesterday Kebble had been given until 1pm today to meet with his legal advisers.
Kebble said if no constitutional point could be pursued then JCI would pay the money to DRD.
`I think they need the money more than we do right now.`
Last week DRD was forced to warn its shareholders that if its restructuring programme was not successful and if the rand strengthened, damping the gold price, the company`s `going concern` status would be in jeopardy.
Mark Wellesley-Wood, DRD`s chief executive and long-time thorn in the side of the Kebble family, said he found an `irony` and a `beautiful symmetry` to the Kebbles` payment going to DRD when it needed between R50 million and R60 million to restructure its North West operations, which were hit by the rand.
Wellesley-Wood said the debt had been created when DRD was used to warehouse shares for Western Areas when Western Areas made a hostile bid for Randfontein Estates.
Through a complex set of agreements, DRD had taken a loan from Western Areas to buy a variety of shares including shares in Randfontein Estates, Randgold Resources and Harmony. DRD had agreed to warehouse these shares.
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