Johannesburg - The financial consultant whose alleged corrupt activities continue to divide the SA Municipal Workers Union (Samwu) has been charged with fraud and theft of R7 million by the Hawks.
The country’s top crime-fighting unit this week issued an arrest warrant for Sam Phaswane.
Police confirmed this week that Phaswane was a fugitive on the run after multiple police visits to several addresses listed by him came up empty. The Sunday Independent understands the search for Phaswane was turned up a notch over the weekend.
Disgruntled union members calling themselves Save Our Samwu (SOS) began their fight last year to recoup the millions stolen from the union.
They allege that Phaswane defrauded Samwu of at least R136m, supporting their contention with a ream of documents which were supplied to Independent Media and to the police. Independent broke the story last year.
The Sunday Independent has seen, among other documents, the contract Samwu signed for Phaswane’s Mpamba Consulting services – and finance committee documents which show several exorbitant payments to the firm.
Phaswane was hired by Samwu officials several years ago to manage its finances and to project-manage the union’s move to its new Johannesburg head office.
But the union insists the consultant’s contract was terminated and that his actions now have nothing to do with the union.
The fight against corruption in the union has led to a series of court orders to reinstate sidelined leaders who were barred by the union’s national office-bearers (NOBs) from entering union offices.
Samwu spokesman Papikie Mohale says the union is now complying with the court orders.
Millions of union funds have been wasted during the protracted battle. SOS spokesman Sello Selepe said the Samwu leaders were in contempt of court for ignoring previous court rulings against them.
“What an example they are setting – they lose a case, and costs, and then completely disregard the judges’ rulings. A more lurid example of bringing the union into disrepute would be hard to find,” he said.
“Members need to demand that the national office-bearers pay back all the money they have willfully wasted saving their own necks. Who gave them permission to waste millions? Pay back our members!”
Selepe said Sawmu was only a shadow of its former self. There are no visible campaigns, interactions with the government, no pressure or meaningful engagement with the employers, no servicing of members’ needs, no progressive role in Cosatu – and there’s virtually no public profile.
“For the first time in its existence, Samwu is invisible. It barely casts a shadow on the class struggle – never mind being part of it. Former leaders and those workers who sacrificed to build the Union must be heartsore at what they see now,” he said.
The evidence against Phaswane and those who collaborated with him was damning, Selepe said.
“Other arrests will surely follow, when he refuses to take the blame for the missing millions in Samwu’s accounts, and the chronic financial mismanagement which has seen millions wasted under dubious circumstances.
“Despite their bragging and the pathetic lies they spread about SOS comrades, the NOBs are running scared.
“And they must. They have a lot to answer for. All of their wriggling and manoeuvring and pompous statements will count for nothing when they are forced to confront the truth, as will all those who have covered up for them – especially when they have to answer to the membership and the law.”
Mohale said Samwu was “not accountable to SOS but to our entire membership”.
“Samwu has serviced, and continues to service, its membership. We were able to get dismissed workers in Sasolburg reinstated by the municipality,” he said.
“The union is continuing with shopstewards’ elections and regional and provincial conferences in the lead-up to our national congress to be held later this year.
“Those who claim Samwu is invisible are obviously not within Samwu. They would not know our operations and interactions with our members.”
Independent Media