In our Friday morning roundup, see
summaries of our selection of recent South
African labour-related reports.
UIF, Compensation Fund have lost hundreds of millions through ‘absolutely reckless’ investments Moneyweb writes that “absolutely reckless” use of monies belonging to employees in SA has apparently seen the Unemployment Insurance Fund (UIF) and the Compensation Fund lose hundreds of millions through high-risk investments in unlisted companies. Sonja Boshoff, chair of the Select Committee on Economic Development and Trade, has warned that the funds need to be “saved from total collapse”. Boshoff listed three specific investments that resulted in the UIF making losses, namely a R250 million investment in Musa Capital in 2018 worth “absolutely nothing” today; a R20 million investment in Fountain Civil Engineering in 2015, with 65% of the value of this investment lost; and a R2 million investment in Zamalwandle Transport Logistics in 2021, which is now also worthless. The investments by the UIF and Compensation Fund are managed by the Public Investment Corporation (PIC) based on the investment mandate given to the PIC by these entities. “The picture that has been painted is dismal because if you have invested R250 million in the year 2018 and you have nothing to show for it, why has nobody in the department spoken about it?” Boshoff asked. She indicated that she has submitted written questions to the Department of Employment and Labour (DEL) about the listed and unlisted investments but the department has tried to evade providing answers. Boshoff added that to prevent the UIF and Compensation Fund from collapsing totally, there needed to be consequence management “if wrongdoings are found”. According to Boshoff, another problem was the many vacancies in the department, with it having an acting director-general, acting chief financial officer and “an acting this and an acting that”, which meant there was no continuity if someone resigned or was suspended. PIC spokesperson Adrian Lackay said the PIC has not made any new investments in the unlisted investment space for more than three years since clients put a moratorium on socially responsible investments (SRI) and unlisted investments. Read the full original of the report in the above regard by Roy Cokayne at Moneyweb
Patient dies, ambulance crew injured after colliding with truck in Eastern Cape on Thursday News24 reports that a female patient died while two emergency management services (EMS) personnel were seriously injured after their ambulance was hit by a truck on the N6 in Macleantown, East London, on Thursday morning. The patient was being transported from Burgersdorp Hospital to the Nkqubela TB Hospital in Mdantsane. Eastern Cape Department of Transport spokesperson Unathi Binqose said both vehicles were travelling from Komani. "It is not yet clear how [the accident happened], but it is alleged the Volvo truck was driving behind the ambulance. A patient, who was being ferried in the ambulance, died at the scene, while the two medical personnel sustained injuries. The truck driver escaped unharmed. A culpable homicide case has been opened at Macleantown police station," said Binqose. The Jaws-of-Life had to be used to free the trapped ambulance crew. According Makhaya Komisa, spokesperson for Eastern Cape Transport and Community Safety MEC Xolile Nqatha, the ambulance was allegedly making a U-turn when the accident happened. "According to the Volvo truck driver, the ambulance made an indication to the left side and suddenly made a U-turn just as the truck was passing on the right-hand side, and they collided on the oncoming traffic side," said Komisa. Read the full original of the report in the above regard by Sithandiwe Velaph at News24
Stilfontein community members claim police blocked efforts to supply illegal miners with food parcels News24 reports that police guarding the Stilfontein mine have allegedly turned away food parcels for scores of zama zamas (illegal miners) underground. Addressing the media near the shaft, community leader Johannes Qankase claimed their efforts to deliver food parcels were dealt a heavy blow as officers guarding shaft 11 ordered them to speak to senior police management first. The efforts came even as a matter between the police and representatives of the illegal miners was expected to be continued with in the North Gauteng High Court. "We know that according to the recent court order, we are not allowed near the site. We wanted to assist illegal miners underground. We were told to speak to senior police management about the food. We don't know how the situation is underground. We last gave illegal miners food on Saturday. Judging by the number of people underground, we don’t think the food delivered on Saturday will last longer," Qankase said. A well-wisher apparently donated the food parcels. Police spokesperson Brigadier Sabata Mokgwabone said he didn't believe that food had been turned away. Meanwhile, Qankase believed that the situation underground had worsened. "Judging by how the 10 rescued illegal miners were, we don't think they will have enough chance of survival. They were sick, hungry and dehydrated. I am sure something terrible is happening to them underground,” Qankase said. Read the full original of the report in the above regard by Ntwaagae Seleka at News24 (subscriber access only) Vavi worried that Stilfontein zama zamas ‘will die a slow death' News24 reports that SA Federation of Trade Unions (Saftu) general secretary Zwelinzima Vavi has accused the state of subjecting illegal miners at a disused Stilfontein mine to a slow death. Vavi addressed the media at shaft 11 on Thursday. He stated: "Without the state's own intervention, the [illegal] miners underground are subjected to a slow death. They haven't got food, water and medicine since Saturday. They are also not being brought to the surface. The process of getting them up was very slow and tedious. It took a full hour of hard work by 50 people to bring one person to the surface.” Adding that since Saturday nobody has been rescued, Vavi went on to indicate: “Those who were brought up [to the surface] haven't been arrested, contrary to reports that police were waiting for them to emerge and arrest them. This was a facade from the police" A team of mine rescue experts, as promised by Police Minister Senzo Mchunu last week, arrived at the shaft on Tuesday morning. Rescuers began their work on Wednesday, using excavators to clear the surface. The second phase will include erecting a structure for a camera to be sent down to assess the mine before illegal miners can be retrieved. North West police spokesperson Brigadier Sabata Mokgwabone said on Wednesday that police prevented community members from entering the site, adding that it was a crime scene. Mokgwabone confirmed that the illegal miners last received food on Saturday. Read the full original of the report in the above regard by Ntwaagae Seleka at News24 Extortionist demands cut from rescuers at Stilfontein mine The Citizen reports that the Stilfontein gold mine saga has taken a twist with reports that an individual attempted to illicit a cut from a team of rescuers at the mine. The rescuers were deployed by Police Minister Senzo Mchunu at the Stilfontein mine last week. Police Spokesperson Brigadier Sabata Mokgwabone said on Thursday: “We are aware that there’s somebody who demanded 30% from one of the contractors that were working here to clear the site. We are working on it. There’s no formal case that has been opened. The reason we are raising it [is because] we want members of the community also to be aware that not everybody who is here, is here for a good cause. We have people here but for ulterior motives, but we will definitely follow up on that.” Mokgwabone said the plan to “rescue the illegal miners is continuing. It is just that people are saying it is too slow. We are working on it, it’s underway, they must give us time because it’s actually the mine rescue team that is working here.” He said they would not give up until the zama zamas (illegal miners) were out of the mine. The exact number of zama zamas underground is not clear. While some say there are more than 4,000 people underground, police have disputed that figure, saying their intelligence suggests there are only hundreds involved. Read the full original of the report in the above regard by Faizel Patel at The Citizen Failure by Mantashe to implement artisanal and small-scale mining policy contributing to illegal mining crisis Mail & Guardian writes that the government is to blame for the crisis in the informal mining sector, which has led to the blocking of open shafts by the police as a tactic to “smoke out” informal miners beneath the surface in Stilfontein in North West. This is according to Shawn Lethoko, the chairperson of the National Association of Artisanal Miners (Naam). “The main reason we remain in this crisis is because the government has been dragging its feet to finalise the Artisanal and Small-Scale Mining (ASM) policy,” he claimed. It was amended by Gwede Mantashe, the minister of mineral and petroleum resources, in 2022. “Two years on and the policy has been collecting dust on his table because there is no political will to act,” Lethoko said, adding that the minister was not treating the matter with the urgency it deserved and “we call for him to do the right thing and resign”. In Lethoko’s view, a formal artisanal and small-scale mining sector that is regulated is the correct way to deal with the criminal elements that have become “fairly widespread” in the sector as well as “go some way” in curbing the illicit flow of minerals and associated funds out of the country. Mariette Liefferink of the Federation for a Sustainable Environment commented: “The policy is there; the problem is South Africa is very good with policies, strategies and regulations but very poor at implementation.” In his weekly newsletter, President Cyril Ramaphosa wrote: “We need to be clear that the activities of these miners are illegal. They pose a risk to our economy, communities and personal safety.” Read the full original of the report in the above regard by Sheree Bega at Mail & Guardian Other internet posting(s) in this news category
Former EPWP employees have slept outside Durban City Hall for a month, hoping to get jobs back GroundUp reports that dozens of former municipal workers employed on contracts through the Expanded Public Works Programme (EPWP) have been sleeping in Medwood Garden outside Durban City Hall for the past month. They want their jobs back. Their contracts were terminated in July. Many had worked on six-month and 12-month contracts that were renewed for ten years. Since July, they have been staging protests. Spokesperson for eThekwini Municipality, Gugu Sisilana, previously told GroundUp that the Department of Public Works had dramatically cut the budget for the 2024/25 financial year. As a result, the municipality was only able to recruit 1,276 people, instead of the over 4,000 people in previous years. And this time applicants were restricted to those aged 18 to 35. Many of those whose contracts were terminated are over 40. The Municipal and Allied Trade Union of SA (Matusa) representing the axed workers has unsuccessfully taken the municipality to the Labour Court several times. Read the full original of the report in the above regard by Tsoanelo Sefoloko at GroundUp
Repo rate cut by only 25 basis points as Kganyago warns about uncertainty Fin24 reports that while SA consumer inflation is now below the 3% to 6% target range of the SA Reserve Bank (SARB), the bank’s Monetary Policy Committee (MPC) cut the repo rate by only 25 basis points at its meeting on Thursday. SARB Governor Lesetja Kganyago said the size of the cut was a unanimous decision among all MPC members. He told reporters that unlike during the September meeting, there had been “no discussion about a 50 basis point cut. None." SA, which was among the first to raise rates following the pandemic, with the repo rate climbing from 3.5% in 2021 to 8.25% by 2023, has been cautious in cutting. Rates have only been lowered by 50 basis points this year, with the repo rate now at 7.75%. The latest cut brings the prime rate to 11.25% and will lower the monthly instalment on a new R2m bond (at prime) by around R340. Kganyago said that, in the near term, local inflation appeared well contained. "However, the medium-term outlook is highly uncertain, with material upside risks. These include higher prices for food, electricity and water, as well as insurance premiums and wage settlements." The next MPC meeting is on 30 January 2025. Read the full original of the report in the above regard by Helena Wasserman at Fin24 (subscription or trial registration required). Read too, Reserve Bank cuts repo rate by only 25 bps despite economists’ call for 50, at The Citizen. En ook, Rentekoers daal verder, by Maroela Media Other internet posting(s) in this news category
Businessman Leeroy Sidambe owes over R4m in workers' pension fund contributions SowetanLive reports that the Private Security Sector Provident Fund (PSSPF) is pursuing high-flying businessman and socialite Leeroy Sidambe for allegedly failing to pay over his workers' pension fund contributions, which run into millions. Sidambe has missed making monthly payments for more than 90 months for his 154 employees. Sidambe's company, Sakhile Ezweni Group, was among 5,430 of the worst defaulting firms in respect of nonpayments flagged by the Financial Sector Conduct Authority (FSCA) last year. These companies collectively owed about R7bn to retirement funds. Sidambe owes the PSSPF more than R4m in unpaid worker contributions. PSSPF is now assisting some of Sidambe's employees who have laid complaints with the fund to apply for a writ of execution against Sidambe's property to recoup the funds and accumulated interest. Failure to pay over contributions is a criminal offence in terms of the Pension Fund Act (PFA). The arrears owed by employers have an impact on how much pension the workers receive when they retire or change jobs. "As much as legislation permits the fund to open criminal cases, the trustees handed over a number of non-compliant employers to the fund's attorneys for the recovery of outstanding amounts, which is an ongoing process," PSSPF management indicated this week. Sidambe said the allegations against him were baseless and were from people who wanted to tarnish his name. Read the full original of the report in the above regard by Lindile Sifile at SowetanLive
Bogus Cape Town doctor sentenced for issuing sick notes and prescribed medication IOL News reports that a bogus Cape Town doctor was sentenced in the Bellville Specialised Commercial Crimes Court on Thursday. Earlier this month, Rashid Fareed Mahfouz, 66, pleaded guilty to charges of fraud, forgery, contravention of the Health Professions Act, contravention of the Medicines and Related Substances Act and corruption. The Western Cape spokesperson for the Hawks (Directorate for Priority Crime Investigation) Lieutenant Colonel Siyabulela Vukubi said: “It is reported that on February 15, 2023, the accused practised illegally as a doctor without being registered as prescribed by the Health Professions Act 56 of 1974. He issued sick notes and dispensed medication to unsuspecting patients, using the details of another doctor, who is a registered doctor. He was arrested by Philippi SAPS members at a medical practice on the mentioned date.” His matter being on the roll did not hold Mahfouz back from attempting to bribe a court official to destroy the case docket. A corruption charge was consequently added. The court sentenced Mahfouz to two years direct imprisonment. The judicial process also invoked his suspended sentence of five years’ imprisonment for similar offences that he had been convicted of in 2020, which will now commence on 23 January 2025. Read the full original of the report in the above regard by Robin-Lee Francke at IOL News Mpumalanga Home Affairs official arrested for allegedly soliciting R20,000 to fraudulently secure an ID document IOL News reports that Mpumalanga Home Affairs official, Violet Veleleni Mabena, 57, was arrested for corruption after allegedly orchestrating an elaborate R20,000 bribery scheme involving fraudulent identity document applications. Mabena appeared before the Kwa-Mhlanga Magistrate’s Court on Tuesday following her arrest by the Hawks’ Nelspruit-based Serious Corruption Investigation Unit (SIU) earlier that day. The allegations stem from an incident in October 2021, when a whistle-blower reported Mabena for offering to assist a complainant in obtaining an identity document for a hefty fee. After receiving the payment, Mabena sought help from a woman she had previously assisted to fraudulently acquire a birth certificate for her stepson. “The lady was allegedly made to sign the forms to obtain the identity document for the complainant with the fingerprint of the stepson,” said police spokesperson, Captain Dineo Lucy Sekgotodi. The case came to light when the whistle-blower informed the Hawks, prompting an investigation that culminated in Mabena’s arrest at her workplace in full view of her colleagues and supervisor. Mabena was charged with contravening the Prevention and Combating of Corrupt Activities Act of 2004. She was granted R3,000 bail and the case was postponed to 6 December, for further investigation at the Regional Court. Read the full original of the report in the above regard by Wendy Dondolo at IOL News Other internet posting(s) in this news category
St John's College and ex-teacher hit with R60m lawsuit over pupil's sexual abuse claims and suicide News24 reports that the prestigious St John's College and an ex-teacher accused of sexually abusing the boys in his care have been hit with a R60 million lawsuit over the alleged abuse of former pupil Julio Mordoh, and his subsequent suicide. Julio's parents, Teresa and Marcio Mordoh, filed the lawsuit in the South Gauteng High Court on 4 November. They want the school, the school council, the former principal, and their son's alleged abuser to pay R61.6 million for their emotional shock, grief and trauma as well as the financial toll the ordeal has exacted on them. St John's said that while it has "deep empathy for the Mordoh family's awful loss and actively supported Julio on his mental health journey", it did not agree with the claims made against the school. In November 2021, St John's announced that an independent investigation had been instituted after a now-adult past pupil had confided in his parents that he had been abused by a former prep school teacher. The uncovered further allegations of sexual assault by the same man. He was later charged with four counts of sexual assault related to incidents that took place on a school camp in the North West and appeared in the Rustenburg Magistrate's Court. The charges were provisionally withdrawn earlier this year, however, to centralise various cases. In the interim, in November 2022, Julio – one of his alleged victims – died by suicide at a local mental health clinic, which his parents are also suing. He was 20 years old. Three weeks earlier, Julio had deposed to a police affidavit about his experience. Read the full original of the report in the above regard by Bernadette Wicks at News24 (subscription or trial registration required) Limpopo teacher to appear in court on Friday over sexual assault charges involving two minors SABC News reports that a 44-year-old Limpopo teacher is expected to appear before the Makhado Magistrate’s Court in Limpopo on Friday on sexual assault charges involving two minors. The suspect appeared briefly in court on Tuesday after he was arrested last weekend. He is alleged to have lured the children to his house where he undressed and forced them to touch his private parts. The suspect is expected to make a formal bail application. In a separate incident that took place in August in Tzaneen, the parents of a grade seven learner at Morutsi Primary School, who was allegedly sexually assaulted by a 53-year-old teacher, are demanding justice. Meanwhile, earlier this year in May, Limpopo Provincial Police Commissioner Thembi Hadebe raised concerns about the increase in sexual assault cases of minors and underage children in the Waterberg and Mopani districts. Hadebe said it was alarming that some cases happened at school, where minor children were raped by their peers and adults. Read the full original of the report in the above regard at SABC News
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