SA’s top human rights lawyer targets Samancor Chrome for profit shifting

Illustrative image. (Photo: Pxhere)

The AMCU union is launching a lawsuit against Samancor Chrome over its alleged involvement 'in fraud and profit shifting to the value of hundreds of millions of US Dollars'. Red flags have been raised about the company before in the banking sector, so this should be interesting.

The Association of Mineworkers and Construction Union (AMCU) is planning to launch a lawsuit on Wednesday, 2 October against Samancor Chrome, the world’s second largest chrome producer, sources familiar with the matter have told Business Maverick. AMCU is represented by the law firm run by Richard Spoor, South Africa’s leading human rights lawyer, who earlier tweeted the following:

Today a game-changing court case against a big mining company alleged to be involved in fraud and profit shifting to the value of hundreds of millions of US Dollars will be filed at the Pretoria High Court by the AMCU on behalf of its members and in the public interest.

Details will be unveiled at 3pm in Cape Town at a conference on illicit financial flows. Business Maverick was unable to reach Samancor officials for comment.

Sources have disclosed to Business Maverick that a major South African bank declined to provide banking services to Samancor in the past because of concerns about the opaque nature of its ownership structure. The concerns allegedly relate to a structure in the Cayman Islands, a well-known tax haven. BM