COSATU welcomes J Arthur Brown's conviction

The Congress of South African Trade Unions welcomes the news that former Fidentia boss, J Arthur Brown, has been found guilty of defrauding the Transport Education and Training Authority and the Mantadia Asset Trust Company

He was arrested in 2007 in one of the country's biggest financial scandals, charged with running a pyramid scheme and using investors' funds for his personal gain, including the acquisition of luxury cars and beach houses.

The largest amount of money that went missing from his company, Fidentia, was over R1 billion from the Living Hands Umbrella Trust, formerly the Mantadia Asset Trust Company, Thu Apr 18 14:49:09 SAST 2013

which paid money from the mineworkers' provident fund to the widows and orphans of workers killed in mine accidents.

He was also accused of soliciting a R200 million investment from the state-owned Transport, Education and Training Authority (Teta) by giving Teta CEO Piet Bothma a R6m bribe.

He was acquitted on seven other charges of corruption, money-laundering, theft, and fraud, but COSATU totally rejects his claim that this means he has "been vindicated". He should still be punished severely for profiting from a fund intended to help orphans and widows of mine workers.

Statement issued by COSATU, April 19 2013

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