South Africa
The ReDress Consultancy comments.
The union now wants “every single cent returned.” Are you telling me they had no idea about the investments? I find it astonishing that the union has not made one statement since this gross mismanagement of workers funds was leaked to the media in May 2011. Now they are acting all shocked. How quick they are to condemn, prosecute and accuse certain “bosses” of exploiting the poor worker. Sactwu needs to explain how they allowed this to happen.
Both the union and the bargaining council are boastful that roughly 1400 workers have already lost their jobs and over 2000 more stands to join the unemployed masses within the next few weeks because “owners were adamant they would never comply with the minimum wage,” (Business Report, 27 May 2011). In effect 15000 to 20 000 people directly and indirectly may be affected through the loss of over 3000 jobs. How many of these retrenched workers are Sactwu members and how does this financial debacle affect them? “The guilty must go to jail.” It will depend on who is guilty.
Pension fund drained after loans
Factory workers are demanding R1-billion worth of assets from a company that invested its pension money in a scandal involving Deputy Minister of Economic Development Enoch Godongwana.
Ironically, Godongwana is head of the ANC's economic transformation commission, tasked, as deputy to Ebrahim Patel, with reviving the fortunes of factory workers.
Today the Sunday Times can reveal that Trilinear Capital, which manages provident funds for the South African Clothing and Textile Workers Union (Sactwu), has been ordered to return the union's money.
Lawyers acting for the trustees of the union fund say the initial investment of R420-million made in 2007 is now estimated to be worth over R1-billion. The trustees sent the company a letter late on Friday afternoon ending all business dealings "with immediate effect".
Patel was once general secretary of Sactwu while Godongwana was a senior executive of the National Union of Metalworkers.
The saga follows Trilinear granting a series of loans totalling R93-million to the company of Godongwana's wife, Thandiwe. Of this, R27-million was channelled to three companies in which Godongwana and Thandiwe were listed as directors. Godongwana resigned after joining cabinet in 2009.
Thandiwe's company, Canyon Springs Investments 12, now faces liquidation for failing to pay back the money. The union's trustees lodged an application in the Cape Town High Court to liquidate the company which was, incredibly, given a R150-million loan facility. This was supposed to be used to buy an unspecified listed company - but this never happened.
And, no loan agreements were signed with Canyon Springs for much of the money, according to court papers. The money was to be repaid within 36 months.
Cosatu general-secretary Zwelinzima Vavi described the deal as "shocking".
"If this is true, I'm shocked by a number of things. Firstly, my heart is down because textile workers are among the lowest paid in the country, with some of them earning as little as R280 a fortnight," said Vavi. "And, for a company to see the poor workers as a cash cow, that's just immoral and disappointing."
The Godongwanas have not responded to questions sent to them last week Friday.
The money given to Canyon Springs belongs to 20000 factory workers earning an average of R700 a week. Workers contribute 6.5% of their salary to the provident fund.
The R93-million loan is made up of contributions by five Sactwu provident funds: the Cape Clothing Industry, the Textile Industry, the Textile Open, the Textile and Allied Workers and Pep Limited.
Court papers show how Canyon Springs received 11 separate payments ranging from R200000 to R30-million between March 2007 and December 2009. The company received a staggering R58-million before any official loan agreement was signed.
Sactwu general-secretary Andre Kriel said the union now wanted "every single cent" returned. "Our investigation is not yet complete but no stone will be left unturned. If any guilt is proven, the guilty must go to jail for a long time," he said.
Barnabas Xulu, from law firm Xulu Liversage, which represents the trustees, said a decision was taken on Thursday to terminate the relationship with Trilinear. Xulu said the trust had invested R420-million with Trilinear - including the R93-million loan given to Canyon Springs. "On Monday at 10am we expect them to hand over everything that belongs to the trust."
The Sunday Times has also established that Trilinear, owned and run by Samuel Buthelezi, had its Financial Services Board (FSB) licence suspended between November 2007 and May 2008. Yet it was still able to handle the union's money, even advancing R4-million to Canyon Springs during this period. FSB spokesman Logan Ramalu confirmed Trilinear's licence had been "suspended on 15 November 2007 for non-material non-compliance and was lifted on 23 May 2008". Buthelezi declined to comment.
In 2009 Godongwana resigned from Pan African Benefits Services, Iboma Call Centre and Iboma Properties - the companies that received the R27-million.
At the time he was listed as a director of 24 companies, but denied the figure, saying some of them are of the same group. Former Sactwu consultant and union employee Richard Kawie is also listed as a director of Iboma Properties. The union said Kawie carried out various functions on provident funds "after his departure". Court papers indicate he was allegedly paid R8-million via Canyon Springs. He denied any allegations of impropriety.
Reference: TimesLive, 29 May 2011
By ISAAC MAHLANGU
3 comments:
Who else had their hand in the cookie jar I wonder, the union has just showed themselves up as extremely incompetent, another case of lining fellow cadres pockets & then trying to more steal from the poor to pay the rich.
When the rhetorical BS stop & the country get on a path of sustained growth - not unsustainable looting & pillaging by the cadre elite and their union lackeys.
the goose is dying & the eggs are no longer golden
Part Two:
HCI’s social responsibility initiatives are largely directed via the HCI Foundation and the SACTWU Welfare Trust.
The HCI Foundation
The HCI Foundation (“the Foundation”) was formed this year effectively by merging the Golden Arrow Foundation (“GAF”) with donations from Marcel Golding and Johnny Copelyn.
Formed out of the bequest of the former owners of the Golden Arrow Bus Services Company, GAF was focused on the Cape Metropolitan Area prior to the acquisition of Golden Arrow Bus Services by HCI. The additional funds acquired through the merger have enabled the new Foundation to have a national beneficiary base. The Foundation currently has assets in excess of R260 million.
The Foundation represents a continuation of HCI’s social responsibility programme and is separate from those of its assets.
The Foundation is a grassroots, community based initiative and its key focus areas are Education, Health and Disabled/ Vulnerable communities.
The SACTWU Welfare Programme
The SACTWU welfare trust is funded by the SACTWU Investment Group (“SIG”), HCI’s most significant shareholder. SIG was formed in 1989 for the benefit of all textile, clothing and leather workers in Southern Africa.
In an effort to overcome chronic funding shortages, the union formed an investment arm in 1993, with a vision of building up a sizable capital base that would free it from depending on donations to fund its social responsibility programmes. It was from this initiative that HCI was born and to this day HCI remains a significant contributor to the SACTWU trust. A large portion of investment income is allocated to the SACTWU Welfare Trust to provide the social benefits to SACTWU members. The Trust funds the SACTWU Welfare Programme. Over the last six years, some R20 million of funding per annum has been provided to the Trust. The distributed funds are spent judiciously on a wide range of projects and initiatives that make a significant impact on the lives of workers and their families.
HCI is one of the few companies on the JSE where broadly based black empowerment shareholders with substantial social responsibility initiatives have a major economic interest.
HCI believes it is critical to support all initiatives that contribute to strengthening economic entrepreneurship in the black community and that empower individuals and organisations.
However, individual needs and aspirations will always be balanced with the broader socioeconomic imperatives of the South African society The key projects of the programme involve education and health.
To date, SACTWU members have obtained over R100 million in housing loans through the scheme.
Comment: This now totals approx R300 million that SACTWU has MISINVESTED of Beneficiaries funds - R200 million in a quasi builing company ...
WHEN will the management of SACTWU actually be removed from office. They are too entrenched in their jobs and no longer service the intrests of the people they claim to represent.
Minister Patel - in the Presidents office, once presided over SACTWU - what is his response to this mis-management of subscriptions of the "poor" machinists on the floor?
WHAT are SACTWU - actually doing for the workers? Besides, making mayhem and not been more pro the poor?
Many years ago - SACTWU actually had a 'leaflet' that they used to distribute to the machinists/workers ... I brought up a question, a couple of years ago and asked WHY this newspaper was discontinued?
The worker need to be informed what is happening to thier subscriptions, where it is invested, and actually what benefits they are entitled to - all I got back was a "wall of silence".
Is this why there is a gagging order on the staff of SACTWU? I was informed by a reliable force within SACTWU -
" we are not allowed to talk to the press/or anyone who asks about our performance - or where our money is".
when I started to query the investigation that was started by the Mail and Guardian - who reported that SACTWU, had no idea of exactly what their investment value was in the HOSKEN INVESTMENT GROUP was. The share register was out of date, their exact shareholding was never reported...nor the amount of money that Hoskens actually owed to SACTWU.
All the above confirms my stance - SACTWU managment should be axed - and new interim management installed - whilst an investigation is done into the "goings on" with the Finances of the Union....as well as their intention to destroy the clothing industry in SA!
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