Vavi is not out of the Cosatu woods

Cosatu president S'dumo Dlamini says axed general secretary Zwelinzima Vavi, right, may yet face charges. Picture: Dumisani Sibeko

Cosatu president S'dumo Dlamini says axed general secretary Zwelinzima Vavi, right, may yet face charges. Picture: Dumisani Sibeko

Published Nov 22, 2015

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Johannesburg - Zwelinzima Vavi, axed from Cosatu, has lots of time to mull over his political future before the federation decides whether there are grounds to press charges against him.

An investigation into Cosatu’s failed investment arm, Kopano Ke Matla – which was used as a reason to dismiss Vavi – is to be discussed at the federation’s national congress starting tomorrow.

Cosatu president S’dumo Dlamini said once a board of trustees had completed its forensic investigation, it would be decided if Vavi or anyone else should be sanctioned.

“The central executive committee says to wind down Kopano, and make sure there is a board of trustees who must (undertake) a due diligence process. These are the people who must find if anything needs to be investigated further. The matter is not closed.

“The board is being registered and it is almost concluded.”

Vavi and Collin Matjila, who left his position as head of Kopano to become acting chief executive of Eskom, were fingered in an initial forensic investigation into the investment company’s dealings. These included Cosatu’s losing up to R16 million when it sold its old headquarters and bought another building in Joburg.

Cosatu had entrusted its property transactions to Kopano, despite knowing the Financial Services Board was investigating allegations that its investment arm had misappropriated 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 forensic investigation by auditors 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.

Vavi says he is innocent.

When Cosatu fired him for gross negligence, it accused him of refusing to meet the SizweNtsaluba Gobodo investigators to give his side of the story.

Earlier this week, he said he would not appeal at Cosatu’s congress against his dismissal, and dared the labour federation to take action against him.

“They can’t prove it. They said they were investigating criminal charges. Can you ask them where are their criminal charges?”

Dlamini was non-committal on the question of whether any sanctions would be pursued in relation to Kopano.

“At the end of the day, it is congress that decides what to do.

“You will see we are focusing on fixing what has gone wrong. It’s less about pursuing those responsible for the wrong that has happened.

“The issue of other office-bearers definitely does not arise because the person responsible for receiving reports and following up on what needs to be fixed at Kopano Ke Matla is the general secretary, who then reports to the national office-bearers, which he didn’t do or didn’t do sufficiently. This caused the office-bearers to… investigate.”

Congress delegates 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 central executive committee resolved that union general secretaries find a sustainable way of funding Cosatu. This should include looking at subscriptions and investment companies.

“Over a long period, the state of Kopano Ke Matla has left more questions than answers, particularly with regard to the finances,” says a secretariat document prepared for the congress.

It is understood Kopano’s only remaining asset is Cosatu House.

Another reason for Cosatu wanting investment companies to be discussed at the congress is “business unionism”, which has led to ruthless infighting in many unions as leaders try to benefit financially.

A socio-economics document asks: “What should be the guiding principles and/or protocols on the functioning of investment companies – for example, areas of investment (can we invest in e-tolls and the national lottery)?”

Cosatu is to consider three scenarios. One is to continue as it is, with all unions establishing investment arms and engaging in individual, often contradictory, deals.

Another is that resistance compels unions to withdraw from all investment activity, including pension funds. Unions would then lose the potential to influence investment decisions in the economy.

The third is that unions adopt policies and guidelines that correspond to union principles and positions on the economy.

Labour Bureau

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