- Anglo American hit by apartheid lawsuit - 07.04.2003
Johannesburg – An American lawyer camplaigning for compensation for
victims of apartheid said on Friday he was filing suit for damages of up to
$6,1-billion (about R48-billion) against mining giant Anglo American
Plc and its diamond business De Beers.
The long-threatened case against South Africa’s biggest company, on
behalf of hundreds of thousands of black people, sent its shares skidding
as much as 3,3 percent in Johannesburg and pulled the overall
Johannesburg bourse lower.
US Lawyer Ed Fagan, working with South African attorneys, said he was
acting for people who he alleged had been wrongfully fired for lawful
labour strikes, were subjected to “forced labour under inhumane
conditions” and for those who were wrongfully attacked and victimised during
labour protests.
“If they want to come to the table, tell them to bring $3,1 to
6,1-billion, and then there is something to talk about,” Fagan said.
Anglo rejected the lawsuits.
“Anglo American strongly rejects the efforts made by US lawyers and
others to use US courts to resolve important issues for South Africa’s
future,” it said, adding the issue of reparations should be resolved
through South Africa’s democratic processes.
“We firmly believe that our opposition helped bring about an end to the
apartheid system,” it added in a statement.
Fagan said the suits were being filed in New York and Nevada against
the mining giant and its diamond business. Anglo owns 45 percent of the
world’s largest gem group De Beers. The Oppenheimer mining dynasty and
the Botswana government own the rest.
Fagan made his name with a successful claim against Swiss banks that
held on to the deposits of Jews killed in the Holocaust.
South Africa’s Truth and Reconciliation Commission, which probed human
rights abuses under apartheid, said in its final report last month that
a case could be made for reparations against South African mining
firms, including Anglo American.
The TRC said the mining firms benefited from cheap black labour
guaranteed under the apartheid system.
Anglo – whose businesses interests include gold, platinum, diamonds,
coal, base and ferrous metals and paper – reported sales of $20,5-billion
in 2002. It posted headline profit of $1,76-billion for the year.
“If they can do this to Anglo, they can do it to (oil group)
Sasol, they can do it to the banks, they can do it to a lot of people.”
Friday’s filing is the first to target a big South African company on
behalf of tens of thousands of apartheid victims.
