Retrenched workers battle SA Red Cross

2013-04-17 12:37


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Johannesburg - An application to have the South African Red Cross Society declared "commercially bankrupt" will be submitted to the North Gauteng High Court on Wednesday, Beeld reported.

According to the newspaper, the case was likely to be heard on 15 May.

The application followed the retrenchment of at least 16 workers at the SA Red Cross headquarters, apparently because there was no money to pay them. Jaco Grobler would reportedly submit the bankruptcy application to the court on behalf of the workers.

Beeld reported that the SA Red Cross owned buildings worth about R50m. However, Grobler told the newspaper buildings did not pay salaries or other debts.

"A liquidator will have to intervene because it is clear that the Red Cross is commercially bankrupt," he was quoted as telling the newspaper.

Grobler said the SA Red Cross could also no longer meet its other financial obligations.

A retrenched worker, Nosimolo Zama, reportedly said in an affidavit that a sharp decline in donations and public contributions, and poor financial management was responsible for the "appalling" financial situation.

Beeld reported that the 16 workers would demand R6m from the SA Red Cross.

The SA Red Cross had indicated that it would oppose the application.

Read more on:    red cross

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