Infighting between ex-miners, associations delays payouts
Infighting between local ex-miners and their associations has been identified as the main reason for the delays in finalising the controversial Voluntary Deferred Pay (VDP) special fund.
According to impeccable sources, whenever government started paving the way on how ex-miners could receive the remainder of proceeds from the fund, the associations start fighting among themselves. A source revealed that most of the fighting was because some associations believed that not every ex-mineworker should be entitled to the proceeds from the fund.
The history of the VDP special fund dates back 25 years ago. According to records, the fund started when government entered into an agreement with certain mines in South Africa, whereby the mineworkers made monthly contributions towards the fund. Over the years, the funds exceeded E14 million.
The fund had a defined benefit structure and when miners retired, they received their payouts.
The records indicate that part of the money that was left in the fund after all the contributors had received their payouts amounted to E7 million.
The then minister of Labour and Social Security, told the ex-miners about the E7 million and asked how they would want to utilise the money. It was then that the infighting started. Some of the associations believe that not every former mineworker should benefit from the fund, because it was not every mineworker who contributed to the fund.
The source revealed that two ex-mineworkers’ associations believe that one association should not even be part of the conversations about the fund.
This was evident last week when the Minister of Labour and Social Security, Phila Buthelezi, summoned the three ex-miners’ associations in the country.
The purpose of the meeting was to discuss the issues surrounding the remainder of the VDP special fund. The aim of the meeting was to get ex-miners to have
a common goal on how they wanted to utilise the remaining funds.
Attended
The meeting was attended by representatives from the Swaziland National Ex-Miners Cooperation (SNEMCU), represented by Siphiwe Hlophe and Ndlavela Dlamini; Swaziland National Ex-Mine Workers Association (SNEMA) represented by Henry Mdluli and Robert Ngwenya, and Swaziland Migrant Mineworkers Association (SWAMMIWA) representatives Thulani Ngcamphalala and Vama Jele. The minister noted that there had been ‘back-and-forth’ and certain allegations were made against former officials of the ministry, regarding the fund. He said he felt it was time to settle the commotion of the fund once.
During the meeting with the minister, Social Security Director Magwabane Mdluli, Under Secretary Anthony Masilela, and other senior officials of the ministry, as well as ex-mine workers, shared differing views on how the fund could be utilised. This came after Buthelezi stated that the ministry wanted to recuse itself from the fund by releasing the money from its coffers. Despite the proposal to release the funds, the minister stated that they wanted to ensure that the funds were released to deserving members, who made contributions towards the fund.
“Only deserving members should access the funds. This money should not be used to rent offices and pay allowances of officers, but should benefit those who contributed to the fund. This would protect government from being accused of stealing your money. We have retired civil servants who are still accusing us of stealing miners’ money,” he said.
Two of the associations, SNEMCU and SNEMA urged the ministry to remain the custodian of the fund. They were of the view that if it were to be released to the associations, it would end up not benefiting the actual contributors, but selected individuals. SNEMCU representative Ndlavela Dlamini said: “We have heard that our money is no longer E7 million but E3 million and we want to find out why.
“It is surprising to learn that the fund is now half. We do not want the ministry to divorce itself from the fund. From what is remaining in the fund, can emaSwati be assisted to start projects.”
He said SNEMCU wanted to start feedlots and other agricultural projects. He emphasised that the fund should remain with the ministry for accountability purposes, not associations.
Released
Meanwhile, SNEMA representative Henry Mdluli also urged the ministry to keep the fund. Mduli said: “We don’t want the money to be released to associations; instead, it should be under the guidance of the Ministry of Labour (and Social Security). Some people never contributed to the fund because they were working in the mines that did not have VDP.
“It should be clear that not all mineworkers contributed, especially those in coal mines.The ministry should be vigilant on those. Some of those who spoke too much were not working for the contributing companies.”
SWAMMIWA representative Jele, however, was of the view that there was no possibility that ex-miners would be able to return the funds after utilising them. He said the dream of using the fund to start businesses and turning it to a revolving fund was far-fetched.