SAMWE does not have a mortgage loan with VBS

30 April 2018

The South African Municipal Workers’ Union (SAMWU) has learnt with disappointment allegations made by the City Press in an article tittle “VBS loan bonanza” wherein the newspaper alleges that the union has financed its head offices in Johannesburg through a mortgage loan from VBS Mutual Bank to the tune of R11.8 million. 

Despite the union’s General Secretary having confirmed with the the journalist when queried about the alleged mortgage loan that the union has not financed its head offices, the publication went ahead and printed the story which is now causing reputations damage to the union. 

We can confirm that the union’s head offices are fully paid up since 2007. The only credit facility which SAMWU has entered into with VBS is for the provision of photocopy machines for the head office, provincial and regional offices. This loan is currently being religiously serviced through a debit order on a monthly basis.

SAMWU is a legal entity and as such can enter into credit agreement with any service provider. Following the lapse of the previous photocopy machines with a service provider, the union entered into an agreement with VBS Mutual Bank to finance the current contract, an agreement which was concluded following proper due diligence from both parties. 

Of great concern is that the journalist did not even bother to confirm details surrounding the credit facility which was extended to the union and proceeded to use a date and signature of the union President from a different agreement which did not have anything to do with financing the union offices but an agreement on helping our members.  

The paper further alleges that “a copy of the mortgage deal filed at the Johannesburg deeds office is dated October 4 2007 and signed by Samwu’s president Pule Molalenyane” this is far from truth as Molalenyane could have not entered into any agreement on behalf of the union in 2007 as he only became President in August 2015.  

Issued by, Papikie Mohale, National Media Officer, SAMWU, 30 April 2018