Ubank bosses must grow business or go, says NUM

NUM general secretary David Sipunzi (centre). Picture: Nqobile Sithole

NUM general secretary David Sipunzi (centre). Picture: Nqobile Sithole

Published Sep 26, 2016

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Johannesburg - The National Union of Mineworkers (NUM) has re-affirmed that Ubank is not for sale and says management should “step aside” if they have run out of ideas to grow the bank.

During a media briefing on Monday, the NUM General Secretary David Sipunzi said the union has condemned the behaviour of the bank's CEO.

“The NEC condemned the behaviour of the bank's CEO in particular and the Ubank board in general who are doing absolutely nothing to save the bank but everything else to downgrade it and sell it to the lowest bidder.”

The bank which is owned by Teba Trust is jointly administered by the union and the Chamber of Mines, mainly serving mine workers. Ubank has been suffering major losses since the mining industry distress began in 2012.

The union earlier this year revealed the Gupta's attempt to buy the financial institution after the four major banks stopped all business with the family.

However, Sipunzi made it clear that the bank is not for sale and that it has not breached the Reserve Bank's capital adequacy ratio requirements.

The union also urged labour federation to improve its ties with the bank in order to assist mine workers.

“We also call on Cosatu to seize this as the golden opportunity to utilise UBank as the vehicle to implement its resolution on the establishment of a worker's bank.”

Ubank were not immediately available for comment.

The Chamber of Mines has however assured that it will do all it can to protect the interests of the bank and its depositors.

@heidigiokos

Labour Bureau

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