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Please name your source - a friend, a newspaper article, a DVD, doctor. Sometimes people say hear when they actually meant read.
Is it possible the diabetes surgery you "heard" about is "bariatric surgery" or commonly known as stomach bypass surgery which is used on obese persons for weight control but now being touted as a diabetic control?
In a DVD by Dr. Michael Roizen (http://www.realage.com/company_info/roizen_bio.aspx) he announces bariatric "bypass" surgery as removing diabetes in patients but goes no further. He does state that the surgery is risky, something you should investigate on your own.
Best help you can give your aunt is to control her diet with low carbs, no sugar, and moderate exercise to help control her diabetes, that is , if she is hyperglycemic.