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Fin24 reports that in a blow for the National Metalworkers Union of SA (Numsa), the Constitutional Court (ConCourt) ruled on Wednesday that it cannot hear the union's application seeking to have Parliament decide on whether state-owned enterprises could be allowed to go insolvent.
According to the apex court, the matter was not within its jurisdiction and mandate to hear directly. In May this year, Numsa applied directly to the ConCourt, seeking a ruling that the National Assembly's Portfolio Committee on Public Enterprises and Standing Committee on Public Accounts (Scopa) should play a more active role overseeing insolvency and liquidation processes in struggling state-owned enterprises (SOEs). There are some 700 SOEs in SA. In the supporting affidavit, Numsa general secretary Irvin Jim referred extensively to the troubles at arms company Denel, as well as airline SA Express. Numsa wanted the ConCourt to rule that Scopa should hold public hearings and entertain submissions on whether any major SOE in distress should be allowed to go insolvent or be liquidated by a court. The union wanted Parliament to be ordered to pass a resolution on this question. In its supporting affidavit, the union argued that Parliament has an obligation of oversight and accountability that was set out in the Constitution.
- Read the full original of the report in the above regard by Carin Smith at Fin24
- Read too, Top court dismisses Numsa’s application over SA Express and Denel rescue, at BusinessLive (subscriber access only)
Get other news reports at the SA Labour News home page