Cosatu 'plundered millions from fund'

2013-10-06 07:19

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

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

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.