Vavi mulls future, but can sleep easy for now
AXED Cosatu boss Zwelinzima Vavi is in the clear for now after being threatened with criminal charges, as he mulls his political future.
While an investigation into Cosatu’s failed investment arm, Kopano ke Matla, which was used as a reason to dismiss Vavi, will be discussed at the federation’s national congress starting tomorrow, the meeting is unlikely to decide on any action against him.
Cosatu president S’dumo Dlamini has said it would be decided if Vavi or anyone else should be sanctioned when a board of trustees had completed its forensic investigation.
“The CEC (central executive committee) says to wind down Kopana, make sure there is a board of trustees who must do due diligence. These are the people who must find out if anything needs to be investigated further.
“So the matter is not closed. The board is being registered and is almost concluded,” he said before the congress.
Vavi and Collin Matjila, the head of Kopano who left to become the acting chief executive of Eskom, were both fingered in an initial forensic investigation into dodgy dealings concerning the investment company.
This included Cosatu losing up to R16 million in the sale of its old headquarters and purchase of the new one in Joburg’s CBD.
Cosatu had entrusted Kopano to conclude its property transactions, despite it knowing that its investment arm was under investigation by the Financial Services Board for misappropriating pensioners’ money.
If the board of trustees does eventually recommend action against Vavi and Matjila, it will be difficult not to institute sanctions against some of Cosatu’s other national office bearers at the time.
The initial investigation by audit firm SizweNtsalubaGobodo found that Vavi, his deputy, Bheki Ntshalintshali, and treasurer Freda Oosthuizen had contravened the Companies Act when they sold the federation’s old headquarters.
Until now, Vavi has maintained his innocence. He was accused by Cosatu, when he was fired for gross negligence, of refusing to meet Gobodo investigators to give his side of the story, which he has done on a number of occasions.
Earlier this week when announcing that he would not appeal against his dismissal at Cosatu’s congress, he dared the federation to take action against him.
“They said they were investigating criminal charges. Can you ask them where their criminal charges are?” he said.
Delegates at the congress will be asked to develop a strategy on union investment companies. There is increasing concern that these companies focus on making profits.
In March, the CEC resolved that the general secretaries of Cosatu’s affiliates should find a means of funding Cosatu in a sustainable manner, which should include looking at subscriptions as well as investment companies.
Another reason the federation wants investment companies to be discussed is because of “business unionism” which has resulted in ruthless in-fighting in many unions as leaders attempt to financially benefit from these companies.