Cooperatives vow not to rest till they find missing R39m

SIU submitted report to Zuma but no action taken

An organisation representing cooperatives is up in arms over a missing R39m that was meant for the sector.

About six years ago, the department of cooperative governance & traditional affairs (Cogta) gave the SA National Apex Cooperative (Sanaco) R39m. The money was meant to build three factories in KwaZulu-Natal, Gauteng and North West for use by cooperatives in the provinces.

While the money left Cogta coffers, the three buildings never saw the light of day.

Cooperatives took the matter to government and former president Jacob Zuma ordered the Special Investigations Unit (SIU) to look into the matter in 2014. Years later, a report was submitted to Zuma. It has not been made public and there is no sign of the money.

Sowetan asked Sanaco what they did with the funds.

“Sanaco is neither in possession [of] nor aware of the SIU report. In the circumstances, Sanaco is not in a position to comment,” said spokesperson Lawrence Monyahi.

“People who worked on this at the time are all gone,” said Cogta head of communications Legadima Leso.

But the SIU confirmed that it investigated the matter and that the report was submitted to the president.

Ann Ngutshane, president of the National Apex Cooperative of SA (Nacsa), said they had requested the report from the department of small business development, which is now responsible for cooperatives, but could not get it.

“Cooperatives are in a dire state... so R39m in the cooperatives environment is a lot of money. It could have helped many cooperatives. We are going to refuse to rest until someone is held accountable.”

Edith Vries, director-general in the department of social development confirmed that the department received a copy of the SIU report but could not make it public.

“Since we’ve had the SUI report my department has not extended any financial support to Sanaco except for paying the costs of Sanaco members who were part of the task team organising the 2017 International Cooperatives Day,” Vries said.

The presidency conceded there are many such SIU reports that have not been acted on.

“Our legal team has commenced a process of cataloguing all these and making recommendations for action.

“We will therefore only be in a position to comment on this report once this process has been completed,” said spokesperson Khusela Diko.

/ T S H EPO KEKANA Cooperatives like Ujimabakwena Shoe Cooperative, a company that manufactures shoes in Main Reef Road, Roodepoort, are operating in a tough climate.