Johannesburg - A forensic audit found irregularities in the sale of the old Cosatu House, the trade union federation said on Tuesday.
“The CEC (central executive committee) reviewed a final report by auditors SizweNtsalubaGobodo on conclusion of their investigation into allegations,” Cosatu acting general secretary Bheki Ntshalintshali told reporters in Johannesburg.
Besides the selling and buying of the Congress of SA Trade Unions' old and new buildings, the auditors also probed a possible conflict of interest concerning suspended general secretary Zwelinzima Vavi and his stepdaughter.
She was employed by a service provider that was doing business with the trade union federation.
The service provider, VMS, provided technology for the fingerprinting system, among other services, at Cosatu's new premises in Braamfontein.
The auditors also found a conflict of interest in regards to the business partnership between VMS and Vavi's wife.
In terms of two companies, Kopano ke Matla (KKM) and Cubah properties, which Cosatu owned, there were irregularities with regard to the KKM chief executive officer and the board of directors of Cubah properties.
Ntshalintshali explained that it had established Cubah properties because it did not have the capacity to run a building. The company would maintain the building and Cosatu, and other unions, became tenants who paid rent.
Three of Cosatu's national office bearers were on the board - Vavi, Ntshalintshali, and treasurer Freda Oosthuysen.
Cosatu took the decision to sell its old building because the CEC told it to. The trade union federation members were questioning why Cosatu was paying rent in a building it owned.
The board was now in trouble because when it decided to sell the building it did not inform the registrar of this decision in terms of the Companies Act.
Ntshalintshali did not give further details but said the NOBs (national office bearers) were studying the forensic report and everyone involved.
“The NOBs will be seeking legal advice on the suitable action to be taken in this regard,” he said.
The report was given to the CEC at a special meeting on Monday.