news shutterstockIn our afternoon roundup, see summaries
of our selection of South African labour-
related stories that appeared thus far on
Monday, 9 December 2019.


MINING LABOUR

NUM blasts management over rockfall fatalities at Tau Lekoa gold mine

Business Report writes that the deaths of four mine workers following a rockfall on Saturday at the Tau Lekoa gold mine in Orkney, North West, has sent shock waves across the mining industry.  The mine is owned by Hong Kong-listed Heaven-Sent Gold.  The gold sector's biggest trade union, the National Union of Mineworkers (NUM), blamed management for the fatalities, saying they could have been prevented.  The union alleged that employees who were at the scene had managed to rescue one of the miners but management had stopped the team leaders and winch drivers from rescuing four other mineworkers who were still trapped underground.  NUM president Joseph Montisetse said the employees informed him that they were deliberately stopped from rescuing the four other trapped mineworkers by a "white proto team".  Montisetse indicated as follows:  “Our members told us that if they had been allowed to rescue those four mineworkers on Friday afternoon, they could have been found and rescued alive.  These lily-white proto teams do not care about the lives of black mineworkers.  They care about making money (rather) than saving the lives of the trapped black mineworkers.  It is our members who rescued the only mineworker who was found alive, not the lily-white proto teams.”  Montisetse said the union was also concerned that there was no escape route in the working area where the four mineworkers were found dead.  He added that that the state should hold the industry fully accountable for its failures.

Read the full original of the report in the above regard by Dineo Faku at Business Report

Minerals Council brags about black empowerment, but minerals department sceptical

BusinessLive reports that the Minerals Council SA (previously called the Chamber of Mines) has released data showing 32 of its members representing 80% of the headcount met or exceeded nearly all targets set in four major elements of the second charter, also known as the 2010 charter.  Among the most closely watched performance indicators are the ownership levels of mining companies by BEE entities, which the 2010 charter set at 26% and the third charter gazetted at the end of 2018 raised to 30%.  Based on the charter compliance documentation submitted to the Department of Mineral Resources & Energy by March 2019, the council said 32 of its members had an average 39.2% ownership by historical disadvantaged South Africans.  The department welcomed the self-assessment of charter compliance by the council, but said it regarded the work with a degree of scepticism.  “The experience of mining communities throughout the country, suggests that little or nothing has changed.  Compliance will ultimately therefore be real when the industry’s relationship to workers and communities is improved, and communities feel and recognise themselves as beneficiaries of what accrues to mining companies,” department spokesperson Ayanda Shezi commented.  Noting that the department was the only legal institution that could determine whether any company had complied, or not, with the Mining Charter, Shezi reported that they were consolidating and assessing data submitted for all operational mines and would release the findings in due course.

Read the full original of the report in the above regard by Allan Seccombe at BusinessLive. Read too, Transformation is slow at mining houses, with top management still mostly white and male, at City Press

Postings on mining charter / transformation

  • Mining Charter differences narrowed down to three issues, on page 20 of Business Report of 5 December 2019


REMUNERATION / SALARY ADMINISTRATION

Road Accident Fund’s accounts attached, can’t pay salaries

City Press reports that the Road Accident Fund (RAF) has been unable to pay expenses like salaries because its bank accounts have been attached.  In the meantime, the fund owes R17 billion to people across the country who have suffered losses due to road accidents, but who are still waiting to receive their compensation.  In an urgent application in the Pretoria High Court last week, the RAF had two requests, namely for the Sheriff of Pretoria East to return control of its eight Absa bank accounts to it, and for the court to make a permanent special arrangement that would give the RAF the leeway to pay claims within 180 days instead of 30.  However, Judge Selby Baqwa scrapped the urgent application from the roll, with costs.  Collins Letsoalo, the RAF’s acting CEO, painted a grim picture in the fund’s court papers.  The RAF gets R3.5 billion from fuel levies every month, but has to pay out on average R4.3 billion in claims.  This is before it has even paid salaries or other expenses.  Previously it was reported that the RAF was from time to time forced to lease chairs and tables because the Sheriff regularly attached the organisation’s furniture.  An attorney from Pretoria East who did not want to be identified said that his clients, on average, waited for five months for their claims to be paid.  “In the meantime, the RAF has a very luxurious office in Centurion and its annual report is printed on expensive glossy paper – all of it a waste of money,” he noted.

Read the full original of the report in the above regard by Jeanne-Marie Versluis at City Press


EXECUTIVE PAY

EOH blasted by shareholders at AGM over executive remuneration

Moneyweb reports that EOH Holdings is in the crosshairs over executive pay, with an astonishing 65% of shareholders voting against the group’s remuneration policy and its implementation at last Thursday’s annual general meeting (AGM).  The resolutions are both non-binding, but given that they both failed to achieve 75% of votes in favour (both votes also failed at the last AGM), the group is required to formally engage with dissenting shareholders.  The company said it had “already commenced engagement with the dissenting shareholders who have reached out to the company to share their concerns on both the remuneration policy and remuneration implementation report and will continue to do so”.  EOH’s remuneration report disclosed precious little about the criteria used to gauge performance on both short- and long-term incentives.  On the former, it referred only to those being “linked to KPIs [key performance indicators] delivered annually measured against objectives and targets”.  In 2019, there were two specific criteria set, but there were no details on how the various executives fared against those.  But given the scale of the turnaround at EOH, the board can arguably be forgiven for not attempting an overhaul of the policy over the past year as there were far more pressing issues that required attention.  The group said “an enhanced focus on remuneration will be prioritised during the upcoming financial year”.

Read the full original of the report in the above regard by Hilton Tarrant at Moneyweb. Read too, EOH shareholders vote against salary policies, at Business Report

Other internet posting(s) in this news category

  • Tax consequences of share incentive schemes, on page 21 of The Citizen of 9 December 2019


RETIREMENT FUNDS / PENSION INVESTMENTS

GEPF to invest more in fixed-income assets and also wants to increase investments outside SA

Bloomberg reports that the Government Employees Pension Fund (GEPF) is planning to invest more of its about R2-trillion in fixed-income and unlisted assets as SA faces a possible credit-rating downgrade by Moody’s Investors Service in 2020.  It is also still seeking to increase its investments outside SA to reduce risk of over-exposure to locally traded companies, GEPF principal executive Abel Sithole said on Thursday at the release of the fund’s annual report for the financial year to the end of March.  “One way to prepare for a downgrade is to start positioning the portfolio on the unlisted and fixed-income side,” Sithole said.  Even so, the pension fund could not take “knee-jerk” decisions and needed to consider what was good for the country.  Moves to take more money offshore would also not happen “overnight,” he said.  The GEPF has more than 90% of its assets invested in SA and taking more cash offshore could be a blow to SA’s listed companies.  Meanwhile, increased investment in unlisted companies might help back new industries, Sithole pointed out.  Buying more unlisted assets would need to be “done right”, Sithole noted out.

Read the full original of the report in the above regard by Janice Kew at BusinessLive

Consumers dip more into retirement savings, Alexander Forbes reports

BusinessLive reports that financial services group Alexander Forbes Holdings said on Monday that SA’s sluggish economy continued to impede its revenue growth, with its clients having dipped more into their retirement savings during the six months to end-September.  Savings and retirement markets remained under pressure, the group said, demonstrated by the preservation rate for retirement savings declining from 55% to 53% during the period.  This refers to the percentage value of retirement funds that are transferred to preservation or retirement solutions after an employee resigns or retires from a company.  In the company’s retirement business, members under administration declined 17,000 to 927,000.

Read the full original of the report in the above regard by Karl Gernetzky at BusinessLive


MISCONDUCT / DISCIPLINARY ACTION

Integrity of new CEO of Far East Rand Hospital questioned over overtime payments

The Sunday Independent reports that the newly appointed chief executive of the Far East Rand Hospital, Dr Zachariah Mathaba, was employed despite facing charges of gross dishonesty for allegedly being paid for two years’ overtime that he “did not fulfil”.  Mathaba was one of the 11 chief executives appointed by Gauteng health MEC Bandile Masuku at the end of October.  By Masuku’s own account, Mathaba was charged in January this year for “gross dishonesty in that he applied for commuted or fixed overtime from 1 September 1, 2017, to March 31, 2018, and April 1, 2018, to March 31, 2019, and did not fulfil his commuted overtime contractual obligation.”  This occurred when he was a doctor at the Thelle Mogoerane Hospital.  Masuku said the normal disciplinary process was ongoing.  When asked why Mathaba had been appointed despite the serious charges against him, Masuku’s spokesperson Philani Mhlungu downplayed the allegations.  “The Public Service Commission has made final findings on the matter, and the Department intends to implement its recommendations,” said Mhlungu.  DA Gauteng shadow health MEC Jack Bloom said he was shocked that Mathaba had been appointed despite serious charges against him that had not been finalised since January.  “This highlights slow discipline and lack of scrutiny of applicants for senior jobs.  This should never have slipped through, and I hope Masuku rectifies the situation soon,” Bloom commented.

Read the full original of the report in the above regard by Roland Mpofu on page 2 of The Sunday Independent of 8 December 2019

Other internet posting(s) in this news category


WORKPLACE CORRUPTION / FRAUD

Suspended North West health department head arrested over Gupta-linked payments

TimesLIVE reports that Thabo Lekalakala, the suspended head of the North West health department, appeared in the Molopo Magistrate’s court on Friday in connection with the fraudulent appointment of Gupta-linked company Mediosa.  Lekalakala’s appearance followed his arrest on Friday morning by the Hawks.  He was arrested for fraud, corruption and contravention of the Public Finance Management Act.  “The arrest stems from an investigation into the alleged fraudulent appointment of Cureva, which was later known as Mediosa, as a service provider of mobile clinics to service rural areas in the province,” Hawks spokesperson Brig Hangwani Mulaudzi indicated.  Allegedly, Mediosa was appointed by Lekalakala without following proper tender procedures.  “Instead, he allegedly signed a service level agreement while on a trip in India.  It transpired that a family member and friends allegedly accompanied him on the trip funded by Mediosa,” Mulaudzi said.  In addition, the service provider was allegedly paid an upfront amount of R30m soon after signing the service agreement.  Lekalakala was released on R5,000 bail and the matter was postponed until 12 February next year.

Read the full original of the report in the above regard by Ernest Mabuza at TimesLIVE

Two former KwaZulu-Natal Cogta employees get 15 years each for R7.5m fraud

TimesLIVE reports that two former KwaZulu-Natal Department of Corporate Governance and Traditional Affairs (Cogta) employees have been sentenced to 15 years imprisonment for fraud amounting to R7.5-million.  Nokwazi Chule, 32, and Hlengiwe Hlela, 34, appeared in the Durban Specialised Commercial Crime Court on Thursday.  Magistrate Garth Davis sentenced both women to 15 years for fraud and 10 years for the contravention of the Prevention of Organised Crimes Act.  The sentences will run concurrently.  Chule and Hlela were arrested in 2015 along with their accomplice businessman Max Dhladhla.  In a statement on Friday, the Hawks said the women transferred R7.5m into a bank account held by Imvusa Trading, where Dhladhla was a sole signatory.  “These funds were meant for development at a local community centre in Bulwer, which falls under Ingwe Municipality, but ended up in Dhladhla’s account, where a series of withdrawals were made within a short period of time,” the statement indicated.  Dhladhla was sentenced to 12 years imprisonment earlier this year.  “The long sentences for the department's two former officials send a strong message that embezzlement of public funds cannot be tolerated,” said KZN acting MEC for Cogta, Peggy Nkonyeni.

Read the full original of the report in the above regard by Orrin Singh at TimesLIVE

Hawks nab 10 Limpopo testing station officials for sale of drivers' licences at R8,600 a pop

News24 reports that the Hawks arrested 10 Limpopo testing station officials on Thursday for allegedly selling drivers' licences.  According to the unit, the 10 people, who included a senior licensing officer, three examiners, two clerks, a cashier, an instructor, a general worker and a middleman were arrested at the Malamulele and Mutale testing stations.  “The Hawks' serious corruption investigation team, in collaboration with Road Traffic Management Corporation centre, embarked on a project-driven investigation aimed at addressing allegations of corrupt activities at the testing stations in the province," Hawks spokesperson Captain Matimba Maluleke indicated.  The Hawks' investigation revealed that the driving licences were sold at a minimum of R8,600 per applicant.  The 10 accused had been scheduled to appear in the Malamulele and Mutale magistrates' courts on Friday.

Read the full original of the report in the above regard by Alex Mitchley at News24. Read too, R8,600 could 'buy a driver's licence' at these testing stations — until now, at TimesLIVE

Investigate hiring of thieving Eastern Cape department head, says FF Plus

The Citizen reports that the Freedom Front Plus (FF Plus) is to ask Minister of Public Service and Administration Senzo Mchunu to investigate the hiring of a new head of the Eastern Cape Department of Rural Development and Land Reform after she was found guilty of theft by the Department of Agriculture.  Siphokazi Ndudane was found guilty in a hearing of stealing three tons of abalone, valued at about R7 million, from the department’s stores in Paarden Island between December 2017 and January 2018.  Heloise Denner, FF Plus MP and spokesperson for public service and administration, condemned Ndudane’s appointment, five days after she was dismissed as deputy director-general of the Department of Agriculture, Forestry and Fisheries.  She said it displayed the ANC’s embracing of unacceptable and criminal behaviour.  “This once again serves as proof of the ANC’s tendency to simply redeploy cadres who have been implicated in irregularities,” Denner said.  She demanded that the department institute criminal proceedings against Ndudane.  Denner indicated that she would take up the matter with Mchunu and would demand that he investigate the issue.  Action must also be taken against all officials involved.

Read the full original of the report in the above regard by Eric Naki at The Citizen


COMMUTING / TRANSPORT

Transport Minister dissolves Prasa interim board, places rail agency under administration

Fin24 reports that Transport Minister Fikile Mbalula has dissolved the interim board of the Passenger Rail Agency of SA (Prasa) and has placed the struggling state-owned entity under administration with immediate effect.  He appointed the interim board in April 2018 to turn the ailing rail agency around.  Bongisizwe Mpondo, who has served on the boards of the East London Industrial Development Zone, South African Express and SAA, has been appointed as administrator.  Mbalula also announced that the secondment of the acting group CEO, Dr Nkosinathi Sishi, had been withdrawn with immediate effect.  Prasa has been rocked by allegations of administrative inefficiencies and corruption involving top executives, with former transport minister Blade Nzimande once suggesting that it had for a long time been used as an ATM.  Attempt to turn the company around have led to suspensions of numerous senior managers implicated in allegations of improper, irregular, corrupt, fruitless and wasteful expenditure.  Early this month, Mbalula told MPs that a permanent chief executive officer and other critical executives would soon be appointed, following months of leadership instability.  Interim CEO Sibusiso Sithole, quit in February, after eight months on the job.

Read the full original of the report in the above regard by Sibongile Khumalo at Fin24

Metrorail offers R100,000 reward for two rail ‘arsonists’ shown in CCTV footage

News24 reports that Metrorail has released footage captured on CCTV of two of the men wanted for the fires which recently crippled Cape Town’s rail network.  A reward of R100,000 is being offered for information that will lead to the conviction of those believed to be behind the arson attack.  According to Metrorail, the blaze in the early hours of 28 November destroyed 18 train carriages worth R61m, overhead electrical wiring to the tune of R154,000 and rendered 14 of Cape Town station's 24 available platforms inoperable.  The train arsonists behind the crippling of the backbone of Cape Town's public transport system could face imprisonment of up to 20 years, according to Western Cape Community Safety MEC Albert Fritz.  On Sunday, he welcomed the Critical Infrastructure Protection Act, which was assented to last month.  Fritz explained that the Act will come into operation on a date determined by the President in the Government Gazette, after which the Minister of Police must declare the specified infrastructure as critical infrastructure before the Act applied to it.  Metrorail said in a statement that Prasa Protection Services and specialist investigators were working together with police as the investigations continued.

Read the full original of the report in the above regard by Tammy Petersen at News24

 


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