Programme for Community Development (Pty) Ltd filed an urgent application with the Pretoria High Court to remove Thomas George Nell and appoint Jacobus Michiel Van Tonder as Business Rescue Practitioner of Programme for Community Development (Pty) Ltd on Monday, 07 July 2025.
“That Mr. Nell be removed as Business Rescue Practitioner of PCD on the grounds that he in this instance, failed to (1) perform his duties as a business rescue practitioner; and or (2) exercise the proper degree of care in the performance of his functions; and or (3) had a conflict of interest or a lack of independence, and that Mr. Van Tonder be appointed in his stead to continue with the business rescue process.
”This bold move by PCD comes after an alleged irregular voting process that took place in favour of the newly registered company called Elekwa Mining.
The applicants argued that the section 151 creditors’ meeting and vote of 10 June 2025 and the dismissal of a previous business rescue plan are allegedly flawed and prejudicial.
The application was filed by Kganare and Khumalo Attorneys Inc on behalf of the PCD shareholder, Khelina Hluthani and former employees and creditor of PCD, Douglas Vusimuzi Sibidla, Matshidiso Moses Mvundle, Jan Nashe Matuwane.
PCD, through their legal representative, Kganare and Khumalo Attorneys Inc, has also asked the court to set aside the decision to remove Zambesi Gold Mine (Pty) Ltd’s business rescue plan and that Zambesi should be appointed as mining contractor.
City Report has previously reported that PCD asked the court to set aside the appointment of Elekwa Mining (Pty) Ltd as mining and processing contractor.
PCD argued that the reappointment of Zambesi will produce good results and save jobs as they have spent extensive resources and collaborated with Eleazer to commission their pilot plant, initiating gold production to self-sustain the project for the upcoming 12 months. This development marks a significant milestone in their commitment to sustainable mining practices and community development in the area of the JB Marks Local Municipality and the City of Matlosana Local Municipality.
Zambesi is currently the mining contractor on the Eleazer Mining site, since 2022.“Early on Zambesi realised that a totally new approach different from all the previous operators needed to be investigated – i.e. to increase the yield with this specific high dense feed (as historical yield proved to be marginal), and to decrease the biggest expense, i.e. the costs of transport.
“To this extent, Zambesi arranged for and exported 2 containers approximately 50 tons of the feed material to a company in China who conducted tests. It became apparent from these tests that the normal refinery plants is unable to process a higher yield on the specific feed. This company advised that a new technology plant be engineered and build to specifically refine this material in issue, to be able to increase the yield and make a profit.
”Mining contractors who were previously included; Rephaphame Mining (Pty) Ltd, Marabe Projects (Pty) Ltd, MERCC (Pty) Ltd, Mistico Gold (Pty) Ltd, Evolve Mining, Mobiac Mining, Paragon African Traders (Pty) Ltd and Zambesi Gold (Pty) Ltd.”That the appointed Business Rescue Practitioner properly investigate the claims of all creditors of Programme for Community Development Pty Ltd.”
That the meeting held on 10 June 2025 in terms of section 151 of the Companies Act 71 of 2008, as well as any vote taken in pursuance thereof be set aside and be declared to be null and void and of no consequence.
“Nell was appointed as the interim Business Rescue Practitioner for PCD on 21 November 2017, following a liquidation application by RDA PLANT HIRE. His appointment was ratified on 07 December 2017 in terms of Section 131(5) of the Companies Act.
It is alleged and argued that RDA PLANT HIRE is one of the initial creditors to PCD but was not, according to our knowledge, invited to the section 151 creditors meeting that took place on 10 June 2025 and had no knowledge of it.
In response to the City Report questions – Nell said the matter is being handled with full responsibility. All statutory processes have been properly followed in accordance with the applicable legal framework.
“As the appointed Business Rescue Practitioner, I remain committed to a fair and transparent process, with due consideration to all relevant circumstances. Kindly note that the matter is currently the subject of a court application and is therefore sub judice.“Our focus remains on securing the best possible outcome for all stakeholders, including the JB Marks community,” said Nell.
Speaking to City Report on the basis of anonymity, one source claimed that Zambesi Gold is far better positioned to deliver reliable and sustainable mining operations at the Eleazer Gold Mine.”Putting Elekwa Mining above the Zambesi Gold Mine that is more experienced and at advanced stages of implementation and has the support of international investors is very out of the ordinary and rare. Especially by stopping a contract that has already started through a questionable voting process.”Hassim said Elekwa respects the voice of all community members and encourages ongoing engagement.“
However, it is important to distinguish public narrative from verified legal and commercial facts. The appointment of Elekwa Mining followed a formal process under South African business rescue law.
“On 10 June 2025, at a lawfully convened Section 151 meeting of Programme for Community Development (Pty) Ltd (PCD), 99.02% of creditors, shareholders, and affected persons voted in favour of ElekwaMining as the appointed mining and processing contractor,” said Hassim.
Hassim told City Report the voting process supervised by independent auditors Jan Erasmus and Carel van Zyl, and validated through written legal opinion from Couzyn Hertzog Horak Attorneys.
“The reference to a “dodgy voting process” is simply false and misleading. In contrast, the decision to appoint Elekwa Mining is one of the most overwhelming mandates granted under a business rescue context —and it is binding,” Hassim said.In response to a claim that suggested the involvement of Elekwa Mining might cause more delays, Hassim refuted the claims and said Elekwa Mining is accelerating the rescue.“
We began site mobilisation on 1 July 2025 after all suspensive conditions were met and certified by legal advisors. The first cohort of 30 permanent local staff begins on 14 July 2025, with operational infrastructure already being deployed.
“By contrast, Zambesi Gold was party to multiple agreements with PCD since November 2022 and enjoyed unrestricted access to PCD’s management, facilities, and data. Over this extended period, they failed to produce a viable mining and processing plan, nor were they able to operationalise a single compliant unit.”
He accused Zambesi Gold of failing to secure 1% of the creditors’ vote during the controversial stakeholder voting.“They lacked the required technical and operational credibility. They did not enjoy the confidence of the creditor body.
“And their position in the matter is no longer tenable under law.”
The application was supposed to be made in court on the 22th of July 2025 at 10:00. But the matter was postponed to give other respondents a chance to file their legal views.
