Cosatu 'plundered millions from fund'

2013-10-06 07:19

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Pretoria - A secret Financial Services Board report has found Kopano ke Matla, Cosatu’s investment arm, has plundered millions of rands from an employee provident fund.

According to the Sunday Times, this latest development is likely to heap more pressure on suspended federation leader Zwelinzima Vavi, who is also a board member of Corruption Watch.

The report states that Vavi was alerted to the problem in 2010 but chose not to act. Instead, along with Cosatu president, Sidumo Dlamini, he apparently sanctioned a R2m settlement to make the matter go away.

FSB investigators found that Cosatu officials plundered the retirement savings of 400 000 former Bophuthatswana employees.

Over three years, more than R123m was paid to Kopano companies – R53m of that to Nasieyah Basadien, the managing director of Kopano Employee Benefits (KEB), a company under Kopano ke Matla.

Pressure on Vavi

It's been a difficult few months for Zwelinzima Vavi, who was reportedly taken by surprise by his suspension in August, following his admission to having had a sexual encounter with a female colleague in her office at the union.

In March Vavi reportedly denied any financial misconduct, following an article in the Mail & Guardian which said that he was to be investigated after a decision by Cosatu's central executive committee. Accusations had been made of potential impropriety relating to the new Cosatu building in Johannesburg, among other issues.

The article also alluded to growing tension between Vavi and Cosatu president Sdumo Dlamini, as well as other senior Cosatu leaders,

 
Read more on:    cosatu  |  zwelinzima vavi  |  sdumo dlamini

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