fawuMail & Guardian reports that the Food and Allied Workers Union (Fawu), shaken by factional battles and a multimillion rand financial scandal, faces deregistration because of poor corporate governance and alleged mismanagement of membership fees.  

Last month, Fawu, the second largest affiliate in the SA Federation of Trade Unions (Saftu), fired its long-serving general secretary, Katishi Masemola, for misconduct regarding a R19.2-million write-off at its investment wing, Basebenzi Investment Group, and other charges.  Masemola’s dismissal came after two years of behind-the-scenes battles between a faction supporting him and a rival grouping backing Fawu president Atwell Nazo and the acting deputy general secretary, Mayoyo Mngomezulu.   In May the crisis regarding the union’s finances reached a head when the labour relations registrar, Lehlohonolo Molefe, threatened to deregister Fawu or go to the labour court to have the union placed under administration.  Fawu had failed to submit its annual financial statement for 2017/2018 and submitted its 2015/2016 statements — for which it received an audit disclaimer — to the registrar only in April 2018.  It had also failed to put in place a system of internal controls for more than R73-million in membership fees.


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