Johannesburg - The chief executive of a leading mining consultancy is to appear in court soon after being slapped with three criminal charges.
Bill McKechnie, the general manager of Snowden Mining Consultants, faces charges of theft, fraud and misrepresentation. He was arraigned at the Sandton Police Station on Tuesday. The case is being investigated by two police captains.
Snowden is one of the few mining consultancies in South Africa accredited by the banks to validate bank feasibility studies for new mining ventures.
The charges were laid by Luda Roytblat, the chief executive of mining multinational TransAsia Minerals, following a dispute between TransAsia and Snowden over a contract for a bank feasibility study for a mining venture in Vryheid, KwaZulu-Natal.
The Sunday Tribune has, after discussion with sources and studying documents, been able to establish that:
* In February, TransAsia and Snowden entered into a contract in terms of which Snowden would compile a bank feasibility study. Snowden would, in terms of the contract, be paid R1.3 million.
* Snowden asked for and was paid a 25 percent deposit.
* Trouble started on March 5 when TransAsia noticed a lack of progress on the compilation of the bank feasibility study. A meeting was called on March 6 to address the concern.
* At the March 6 meeting, TransAsia executives were shocked by an acknowledgment from a Snowden executive that the company did not have the necessary staff and skills to undertake crucial parts of the bank feasibility study.
* On March 8, TransAsia instructed lawyers to send a letter to Snowden recording the company’s concern at the lack of progress within the prescribed timeline.
* On March 17, Snowden replied and said the contents of the March 8 letter were under consideration.
The following day, Trans-Asia wrote back, terminating the contract and demanding a full refund of the deposit.
* On March 19, Snowden replied, accepting the termination of the contract but claiming more than R187 000 for costs incurred. TransAsia sources said the company was livid because “the only service Snowden had provided was an inconclusive one-and-a-half page memorandum”.
* The basis for the theft charge is that Snowden allegedly stole money from TransAsia by charging for services not provided.
Contacted for comment, Igno Gouws, the attorney acting for Snowden, said: “The matter is subjudice and accordingly our client will not comment save to state that the charges are without foundation and that this will be demonstrated in court.”