Godongwana denies quitting over R100m pension scandal
Enoch Godongwana insists his resignation as deputy minister of economic development is due to his ANC commitments in the year ahead, and has nothing to do with the probe into the misappropriation of R100-million of clothing workers' pension money.
The R100-million went up in smoke after it was sunk into Canyon Springs, a company -- currently the subject of a liquidation inquiry -- half-owned by a family trust belonging to Godongwana, and his wife Thandiwe.
The money belonged to more than 20 000 members of the South African Clothing and Textile Workers' Union (Sactwu), who earn on average R700 a week and contribute 6.5% of their salary to the provident funds.
"People can have their own opinions about my resignation," Godongwana told The Times newspaper, in a report published on Monday. "In my discussion with the ANC leadership and the presidency, I did not talk about my business interests ... It was out of my own assessment that I decided to resign."
He told the newspaper that he would be tied up with "party work this year", but declined to elaborate on what this would involve.
Salary questions
In October last year, Godongwana told a closed liquidation inquiry in Cape Town that he had expected to earn an annual salary of R1.5-million when he chaired Canyon Springs, but had been paid only when the company had money.
The company's books reveal that he received only R600 000 from Canyon Springs but, according to sources who attended the hearing, he said the company did not keep proper records.
From the records Canyon Springs did keep, it was apparently shown that Godongwana's salary was drawn from the clothing workers' pension money.
When it is finally established what he earned, Godongwana -- who says the loan had been arranged before he and his wife came on board -- could be forced to repay the money.
Godongwana's wife Thandiwe, a director of Canyon Springs, is accused of borrowing as much as R93-million from the company which manages Sactwu's provident funds, Trilinear Capital.
Arrests made
The liquidation inquiry has already led to the arrest in December of union consultant Richard Kawie and Trilinear asset manager director, Sam Buthelezi, who allegedly used money embezzled from the loan deal to finance lavish lifestyles. They could not raise the R500 000 bail imposed and spent Chrstmas in jail, although Kawie last week was released on bail after putting up properties in Goodwood, Cape Town and Noordhoek as guarantees.
Canyon Springs's financial records show that vast sums of money were paid out to Kawie, as well as to the minister of economic development, Ebrahim Patel, who was general secretary of Sactwu at the time the investments were made.
Patel, however, has told the M&G he knows nothing about the movements of the provident funds, which were managed by trustees and were not his responsibility.
Spokesperson Mac Maharaj said Godongwana had tendered his resignation in December, but President Zuma had asked him to stay on until the new year.
"The president has accepted the resignation and thanked the deputy minister for his dedicated service and duty to his portfolio and to the National Executive in general", he said.
Godongwana is a member of the ANC's Economic Transformation Committee. Godongwana is widely regarded in economics, with a Master of Science degree in financial economics from the University of London.
He is also a former deputy minister of public enterprises and continues to be a member of the ruling party's Economic Transformation Committee.
Ref: Source: Mail & Guardian Online, 16 Jan, 2012
6 comments:
what was said: "People can have their own opinions about my resignation," Godongwana told The Timesnewspaper, in a report published on Monday. "In my discussion with the ANC leadership and the presidency, I did not talk about my business interests ... It was out of my own assessment that I decided to resign."
Translated: I have been caught bang to rights and will probably face jail. The leadership forced me to resign so spare the party further embarrasment
He told the newspaper that he would be tied up with "party work this year", but declined to elaborate on what this would involve.
Translated: I am just waiting for my new deployment in a less public position to be approved by Gwede. Hopefully the salary is the same or better.
There are no words. And yet the poor bastards who have lost their pension fund will probably STILL vote for the ANC
Another scandal by an ANC senior cader. On top of this he was asked by Zuma to stay on till the new year. Then he is thanked for his 'dedicated service and duty'. How sick can it get. I hope SACTWU will remember this when it is election time.
t is anathema to the ANC that one of its MPs or cabinet ministers implicated in wrongdoing / fraud / corruption / nepotism / incompetence / bad management should resign. Even the demonstrably inept Sicelo Shiceka brazened it out in the face of incontrovertible evidence until Zuma fired him.
So I guess we have to believe Godongwana's version...
Is their never going to be an end to all this corruption?The Government makes no effort to ensure that clothing workers and their industry is protected by allowing cheap Chinese imports(even bying their
t's -from the Chinese together with their alliance partners)and now this fraudulent misappropriation of the poor workers pension fund.The most disgusting part is that this happened to one of their partners in the Alliance(Sactwu is affiliated to Cosatu).ANC Gov. will most probably say it's not a government problem,the mere fact theat a deputy minister is involved makes it a Government/ANC issue.
revor Manuel ol pal - is this part of the plan, that people from the 'inner' financial circle ETC take from the poor?
Is this Kind of Economic Development - the development Ministers are paid for with tax payers money to develop?
and the DTI is writing off some R600 Mill for 4 planes; is this all part of the PLAN?
If you do nothing - I scoff more at you and your plan! F#$% the poor hey?
Minister Patel is also implicated, very interesting, but true to form knows nothing of the money he allegedly received.
Just like his successor at SACTWU he was not responsible for his members money - it was handled by trustees so therefore their hands are clean & are apparently not accountable & untouchable.
it is a pity they will be voted in next elections by the very people they are plunging deeper into poverty.
So much for a union & govt. that forces the moral high ground and tars & feathers all detractors.
how many are hiding behind their own incompetence & moral deficiency.
Renato,
You will notice that if you go to the M&G website, to where this article appears, it says:
"Canyon Springs's financial records show that vast sums of money were paid out to Kawie, as well as to the company's former director, Mohan Patel."
Your version, sourced from SAPA and published on your blog, says the money went to Ebrahim Patel.
The M&G may be prone to error in many cases, but thankfully they have checked the shoddy journalism of this SAPA reporter and corrected this error at least.
There is absolutely no evidence that money went to Minister Patel. That is why the independent Commissioner of the 417/418 inquiry has not insisted that the Minister attend the inquiry - which he could have done should he have felt there was reasonable cause to interrogate the Minister. The Commissioner has as much evidence as anybody at his disposal and could have called the Minister regardless of whether the union's legal team did or did not want him there.
Simon it took you 6 days for a reply, smoke is not far from a fire it seems.
What is alarming is your boss and his predecessors' attitude to this whole affair, they are not accountable to their members, who are in fact their employers by virtue of the fact they pay dues, which translate into salaries etc.. so that your organisation can supposedly run efficiently, because they gave the money to trustees to do with as they sought fit.
Once again your organisations image is further tarnished by these inactions of those who hold office within your organisation.
the work force are becoming extremely agitated by this lack of accountability by the office bearers - they are getting a very comprehensive education in how their own treat them and their hard earned money.
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