Today's Labour News

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samalogo thumb medium85 87BusinessLive reports that the SA Medical Association (Sama) has been accused of fraud and misappropriation of funds by former leaders of its now dissolved trade union.  

Sama, a nonprofit company registered in terms of the Companies Act that protects the interests of 16,300 doctors for a fee, decided to collapse its trade-union structure at a 2015 board meeting, saying that it had become ineffective.  However, the general secretary of the union at the time, Mahlane Phalane, has revealed in court documents that the association has continued to collect millions of rand deducted from doctors’ salaries as union subscription fees.  Although it is still a registered union, the SA Medical Association Trade Union does not comply with requirements of the Labour Relations Act and the labour registrar has warned several times that it would be deregistered.  Phalane, with the backing of leaders and members of the union, has launched an application in the Pretoria High Court seeking to preserve all assets belonging to the trade union.  He claims Sama has been channeling funds from union accounts into its profit-making subsidiaries as "loans" that are never recouped.  The former leaders have also claimed that Sama did not have the legal authority to disestablish the union.  Sama has opposed the action, arguing that when it founded the trade union it was never meant to be a separate entity to the association.

  • Read this report by Theto Mahlakoana in full at BusinessLive

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