Retrenched workers battle SA Red Cross

2013-04-17 12:37

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

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

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.