Top union goes to war with itself over ‘missing’ millions
Provincial leaders suspended soon after calling for an independent audit
THE political landscape is about to be even further redefined with another Cosatu affiliate threatening to revolt against its leadership amid allegations of corruption.
During the past two weeks, the majority of provincial branches of the South African Municipal Workers’ Union (Samwu) have called for the leadership to be suspended and are threatening to lay criminal complaints against top officials.
This comes in the same week as the National Union of Metalworkers of South Africa said it planned to form its own political party.
Samwu and Numsa are supporters of Cosatu boss Zwelinzima Vavi and backed him even while he was suspended.
This week, Samwu’s provincial leaders challenged their national counterparts to account for between R70-million and R140-million that has allegedly gone missing.
The national leadership, however, refused to appoint an independent forensic audit to investigate the allegations.
The 27-year-old union, which has 180 000 members, represents some of the lowestpaid government workers.
Provincial Samwu shop stewards and leaders are considering laying criminal complaints against union president Samuel Molope and the other five leaders. This follows a draft financial audit that reported huge amounts that have potentially been lost.
Three weeks ago, at a special meeting, top union officials refused to appoint forensic auditors despite five out of nine provinces asking for this.
Instead, the national leadership began suspending those who had asked for the audit and for the national leadership to be suspended.
The call for the union leadership to be suspended came after Pele-Ea-Pele Auditors presented the draft audit report in April. The six top national officials were asked by five of the provinces to step aside. Ten days later, Molope led the suspension of at least nine shop stewards and provincial leaders.
At a central executive com- mittee meeting in April, Molope was asked to explain:
Why at least R6.4-million was paid to Mpamba Solutions. The company is on a R400 000-a-month union contract despite a Samwu resolution to end the contract;
A R6.5-million contract with Pambili Document Solutions for the provision of photocopiers and fax machines. The union pays Pambili (which has a four-year contract with the union) R260 809 a month;
An R80.7-million discrepancy between the draft audit report and the financial committee’s report. According to the audit, the union had, at the end of December 2012, R177-million in its account. The financial committee was told at the beginning of 2013 the balance was R96.9-million;
The purchase of the Samwu headquarters in Frederick Street, Marshalltown, for R6million and the R13.6-million spent on renovations. Already, about R32-million has been spent on renovations;
The unexplained transfer of R24-million of invested union money from a call account;
R10-million paid in (building) “penalties” by the union;
R1-million spent on “office chairs” and another R2million earmarked for office furniture; and
At least R6-million paid to Pretoria law firm Maenetja Attorneys and attorney Ezekiel Maenetja in five months.
On Wednesday, the chairman of the union’s North West branch, Sello Selepe, wrote to Molope accusing him of “undermining” the provincial leadership. Selepe said the provincial office bearers who made the call for the union leadership to be suspended were “ridiculed and reduced to nothing . . . their dignity defamed by the president”.
He said the union leadership did not have the capacity and knowledge to run a sophisticated union and added: “No amount of intimidation will deter us from being critical about the union.”
The CEO of Mpamba, Keith
Molope led the suspension of at least nine shop stewards and provincial leaders
Mafokoane, was “too busy to take any calls” or respond by email over a period of 48 hours.
Mafokoane and his financial director, Samuel Phaswane, are listed in the draft audit as having received air tickets from the union.
Pambili, the company that supplied the union with photocopiers and fax machines, competed for the deal in an open tender with five other companies. The financial committee shortlisted Pansolutions and Kyocera, asking Molope and the officials to decide between the two.
Instead, a contract was signed with Pambili, which charged at least R100 000 a month more than the shortlisted companies.
Molope promised to respond to the allegations, then did not answer his phone.