The Department of Labour is investigating a slew of allegations against Satawu’s leaders who have been accused of using the union’s funds as a personal cash cow
As trade federations organised a national shutdown this week, the South African Transport and Allied Union (Satawu) could not afford to transport members due to financial woes brought on by alleged mismanagement.
The union and its leaders are accused of paying some officials up to R120 000 per month and creating companies with officials as directors - all without approval from decision-making structures.
The union has been beset by internal strife for years and the fresh allegations come amid dwindling membership, the sale of the union’s property in Johannesburg for R10 million, only to rent it from the buyer, as well as the union’s bank accounts being attached by the banks.
The Department of Labour has launched an investigation into the alleged breaches and non-compliance.
A day ahead of the national shutdown on Wednesday organised by its mother body, Cosatu, Satawu advised provincial structures that it did not have money to provide transport for its members to participate.
The union has members at the Passenger Rail Agency of South Africa (Prasa), Transnet and South African Airways (SAA).
“This letter is written to inform you that requisitions for the upcoming Cosatu national strike are duly acknowledged.
“Furthermore, we equally note that some POB (provincial office bearer) allowances are still to be paid. The organisation is currently faced with challenges to release payments to respective provinces (logistical and allowances). The latter challenge is an outcome of an attachment of union accounts,” read the letter.
The department’s probe will also delve into allegations that union leaders established a financial investment company earlier this year without the approval of the central executive committee (CEC).
The directors of the company, Xhathisa Investment Pty Ltd, allegedly include the union’s general secretary, Jack Mazibuko and deputy secretary Anele Kiet.
Xhathisa allegedly entered a deed of partnership on February 3, 2022 with Harodity Divine suppliers to supply fuels and lubricants to Satawu-affiliated companies across South Africa.
Mazibuko and Satawu president Ntuthuzelo Mhlubulwana are also directors of Harodity Divine company.
According to a union insider, the labour movement’s constitution requires that the treasurer be part of efforts to establish a financial arm.
However, treasurer Irene Dlamini’s membership was terminated by the union.
“The decision was taken by only three national office bearers (NOB) while the other two later distanced themselves from the action as they were not consulted. The constitution does not give powers to individuals but to a structure. It should have been the CEC or a committee set up by it that should have made such a decision.
“The timing of their action was also suspicious as it happened while Xhathisa was being established,” the insider said.
The union also allegedly bought vehicles for its provincial structures registered in the senior officials’ names or companies owned by the NOBs despite pleading financial problems.
Other allegations to be probed included:
* Failure to hold a national policy conference or CEC meetings since 2018;
* No Finance Committee meetings held, despite a draft financial report being prepared in 2019, but never tabled to leadership for review and approval;
* The union received an advance payment of over R2m from the National Bargaining Council for the Road Freight and Logistics Industry without the approval of the CEC and the payment of residential rental for Mazibuko and Kiet for over a year one year.
It was alleged that Mazibuko’s rental amounted to R19 248.60 per month including electricity, while Kiet’s was R22 740.43 per month, including other expenses. All this without the CEC’s approval.
Some provincial office bearers who raised concerns about the union’s direction were allegedly suspended, the latest casualty being Western Cape Prasa’s shop steward, Bulelani Ngxukumeshe on August 10.
In 2021 provincial chairperson Lucky Siwani and other office bears including Sindisiwe Mdala, Bonginkosi Lose and Simthembile Mcithi were suspended.
Their suspension challenge is scheduled to be heard in the Western Cape High Court on September 5.
In 2015 the union was forced to overturn the suspension of 11 shop stewards after the Labour Court ruled them unconstitutional and did not follow the prescribed procedure.
The Department of Labour said the relevant official to provide comment would only be available next week.
Labour expert, Michael Bagraim, said the allegations were alarming and would warrant a forensic investigation by the Hawks.
“It’s good to report it to the department but it doesn’t have powers. It sounds like there’s enough smoke to make sure there’s a fire. I would be nervous if I was a member,“ he said.
Bagraim said it was a concern that such allegations against several unions were coming in “thick and fast” over the years.
“It’s sad that we’ve had many years of union fraud. Cosatu also needs to do something,” said Bagraim.
Satawu was given an opportunity to respond to the allegations by Weekend Argus but failed to do so.