SAMWU Media Statement on the Special CEC Meeting Held on the 22nd August 2014
The South African Municipal Workers Union (SAMWU) held a Special Central Executive Committee Meeting on the 22nd August 2014 at the Airport Grand Hotel and Conference Centre. The meeting met and concluded its business despite attempts by rogue and disgruntled people who attempted to disrupt the meeting by forcing their way into the meeting premises.
The meeting introduced newly elected POBs and further congratulated those from SAMWU who are now leading COSATU in various provinces. New staff members were also introduced to the meeting.
The meeting dealt with the following amongst others;
1. CEC Task Team Report
2. Report on the Current State of Affairs of the Union
3. Collective Bargaining Update
1. On Task Team Report
The task team held their first meeting two weeks after they were given mandate by the May Special CEC held in Durban to probe the question of clarity and allegations on 2013 finances raised by some provinces. The task team developed terms of reference and agreed that they would not be accountable to individuals but the union. Various meetings were held between the task team, NOBs and companies which were implicated in the allegations and questions raised by provincial structures.
In the midst of bombardments whose sole purpose was to discredit and assassinate the task team members' character, the task team was able to complete its work. After receiving all relevant documentation, which included bank statements, audit reports and contracts, the task team was able to establish that there were six allegations to probe.
Allegation 1: Unaccounted R80m for Financial Year Ending December 2012
The report indicated that the allegations that were made were based on misunderstanding of the union's finances. Those making these allegations did not distinguish between liquid cash and fixed assets of the union. Therefore there is no R80m which is unaccounted for in the union's purse. These allegations are therefore categorised as baseless. The report further provided a written acknowledgement from SAMWUMED that there has been no money which has been transferred to SAMWU for payment of SAMWU salaries. The union's bank statements which were presented collaborated this finding.
Allegation 2: Unauthorised Transfer from Call Account to Operational Account
The report detailed transfers between the accounts. The task team established that both accounts belong to SAMWU and that the transfers were to cover trade union related expenses which included head office building, legal services, purchasing of provincial buildings, staff salaries, rentals, funding of special events and purchasing of provincial furnishers. The task teak could not find any evidence of maladministration nor malpractice as these were transfers which catered for bona fide union activity.
The task team therefore recommended that;
1. The union's financial policy should be reviewed to be consistent with standard financial practices.
2. Future transfers should be made through a requisition form which should be accompanied by a motivation of the need for such expenditure.
3. A financial workshop to be urgently convened for Treasurers / signatories of the union accounts.
Allegation 3: Unaccounted R1,9m in 2013
The task team looked into all financial records of the union, including bank statements and could not find any trace or confirmation of the transfer. The task team concluded that this allegation could not be proven and justifiably so dismissed as baseless and unfounded. The report also noted that an external audit of the union's finances for the year 2013 is currently unfolding thus we should await the outcome of that report.
Allegation 4: Unauthorised Expenditure of R19m for Head Office Building
The decision to relocate the Head Offices of the union from Athlone, Cape Town to Johannesburg is not one which was unanimously taken by the NOBs, this is a congress resolution of 2009 held in Bela Bela and further re-affirmed by the SAMWU 2012 National Congress held in Mangaung. The 2012 December CEC mandated the NOBs to finalise the relocation of the Head Office by the 7th January 2013 and further mandated them to conclude the renovations and report back to the CEC when work is completed.
The referred Johannesburg building which is now the union's Head Offices was bought in 2008 in a dilapidated state and only occupied by our satellite Head Office in 2009. The main contractor to renovate was appointed in September 2011, whilst in the process of renovations, the Department of Labour prohibited occupation of the building pending the completion of renovations. The main contractor failed to deliver to the union's expectations on the deliverables and further halting the project for 7-8 months.
During the period which the project had halted, the union incurred financial liability which the NOBs have been tasked with investigating the actual amount and the recovery thereof. It is estimated that the financial liability is around R12m. All this happened in 2011 and as such does not fall within the scope of the allegations, nonetheless the task team investigated further.
The CEC therefore resolved to appoint a building committee to ensure that the building renovations continued. This committee subsequently undertook a process of procurement wherein four companies were shortlisted and ultimately Mpamba Solutions and Consultancy was appointed.
We are shocked and surprised that some of the people who formed part of the building committee are those who are raising questions of with regards to the irregular appointment of the project management company. These people includes among others, Jacob Modimoeng, Lance Veotte and Gati Malete who was the chairperson of this committee. It is for this reason that we are in a state of shock and disbelieve that people who sat and recommended the appointment are today claiming not to know anything about this.
Mpamba Solutions was brought in to ensure that work continues. Over time a total payment of R22.5m was paid to Mpamba Solutions of which R16.7m was directly paid to the subcontractors by Mpamba Solutions. The remaining R5.6m was for services which Mpamba Solutions rendered . The task team discovered that Mpamba Solution was paid an amount of R399 000 per month for;
1. Project Management for the renovations at Head Office,
2. Financial accountancy and IT services.
The payments received by Mpamba Solutions are within the framework and guidelines of the scope of services and tariff of fees for project and construction management professions as dictated by the Scope of Services and Tariffs of fees for Project and Construction Management Professions (STPCMP) Act 48 of 2000. Had all staff members agreed to relocate, there would have been no need for this costs incurred.
The NOBs therefore acted within their mandate as per the resolutions to ensure the relocation of the union Head Offices. Noting that the December 2012 CEC mandated the NOBs to finalise the relocation of the Head Offices and further mandated the NOBs to complete the renovations. This CEC further mandated the NOBs to complete their work by January 2013.
Allegation 5: Photocopier Contract
The union had a photocopier contract with Cannon which lapsed and was not extended, this was condoned by the National Executive Committee and was in line with standard financial practices. As an external audit is currently in progress, it would be the opinion of the external auditors that would advise if the NOBs acted justifiably so or otherwise.
Allegation 6: Appointment of Security for the General and Deputy General Secretary without Executive Authorisation
Prior to the appointment of security detail, a meeting of Provincial Chairpersons was convened to discuss issues which were received by NOBs. The Provincial chairpersons therefore recommended that security be appointed as a matter of urgency. An opinion was sought from the union attorneys who recommended that the some NOBs be put on witness protection. This would however have affected their political responsibilities within the union; hence the union had to take a political decision about the deployment of security
2. Report on the Current State of Affairs of the Union
The union is proud of members who have remained focused when confronted by serious challenges; this is however what should be expected from revolutionaries. The union is bombarded with negativity and a campaign led by disgruntled people whose sole purpose is to sow divisions within the union.
SAMWU members should be wary of these agents of doom and the processes that are unfolding within the union, this should encourage members to defend the union and revolution when under attack. The discipline and integrity of the union must be prioritised, the union cannot tolerate any behaviour that brings the union into disrepute. The decisions of the union are binding to all of us without any application for exemption.
This same group of individuals has committed itself to destabilising the union. A notable example of this is the Mpumalanga PEC which was disrupted. The PEC was reconvened and new leadership was elected.
The remaining POBs of North West have been suspended for defying the union's decision and further continuing to assist suspended and expelled officials and shop stewards. The province is now under the administration of Head Office until further notice.
The Western Cape POBs continue to defy the union and further continuing to assist suspended and expelled officials and shop stewards, as such they have been served with notice of intention of their suspension.
The union was supposed to go the Gauteng South High Court from the 25th of August in a matter bought against the union by the suspended union officials and former leaders. The matter was withdrawn by the applicants because they had not followed court procedures to appear in court.
The union is in the process of recouping all legal costs which have been incurred as a result of the judgement given in favour of the union. All disciplined members should remain committed to observe union procedures.
3. Collective Bargaining Update
The Bargaining Committee of the SALGBC met from the 13th to the 15th August to recommence negotiations outside the dispute process already advanced by the union. This was as a result of the SALGBC EXCO meeting that directed parties to engage irrespective of the litigation process those parties are currently perusing.
Main Collective Agreement
We welcome the developments on what appears to be common ground on the Main Collective agreement, that is the scope and the duration of the agreement. The scope of the Main Collective Agreement will still retain municipal entities and the duration of the agreement will be terminated by all parties in the bargaining council as opposed to the demand by the employer seeking to include in the Main Collective Agreement that either party wishing to terminate may do so by giving 3 months' notice.
Home Owners and Rental Allowance
SALGA on the above made it clear to all parties that they are not prepared to enter into any engagement or commitment on any matter that is of monetary value save to process the demands through the appointment of experts to do research on what is available in the market and what could be the possible options for the local government undertaking.
We reject this approach as it did not yield any fruitful results and benefits in the past and there is no evidence that there would be any positive results yielded if such an approach was to be embarked upon. Our demand still remains R1500 per month.
Wage Curve Agreement
SALGA is adamant that they believe the matter has been exhausted through the legal process and believe that even if the agreement was implemented, the agreement would not have solved the complex scenario in municipalities and proposes that parties draw up proposal that could lead a proper wage curve being adopted by the sector and negotiations in this regard be held through a facilitated process in 30 days' time.
Lastly, our members are encouraged to use the currently underway process of Shopsteward elections to defend and consolidate the unity of the union.
This right of members to re-new mandate of their representatives cannot be outsourced to shop stewards but remains their right in terms of the union constitution. We are saving SAMWU from this group of disgruntled individuals.
We have noted with concern the anarchy which has been happening in the Parliament of the Republic. We are of the firm view that South Africa is a constitutional democracy and as such all parties that are represented in Parliament should abide by the rules that govern that institution.
We have also noted the ruling of the Supreme Court of Appeal which handed a ruling that the so called "Spy Tapes" to be handed over. We are a democratic county and therefore should abide by the rulings of the courts.
We welcome the decision by the Gauteng Premier to put in place a review process of the controversial e-tolls. We repeat our call that this is commodification of public roads. Our stance on e-tolls has not changed, we remain opposed to such privatisation.
Lastly, we have noted the political situation in Lesotho. We call on our government and SADC in particular to ensure that peace and stability is restored in the Kingdom on Lesotho. We reject any attempt to assume power though unconstitutional means.
Statement issued by Walter Theledi, SAMWU General Secretary, September 3 2014
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