COSATU shocked at SACTWU Provident Fund allegations
The Congress of South African Trade Unions is outraged at the allegation that 25 000 clothing and textile workers are in serious danger of losing R100 million of the R420 million from five provident funds South African Clothing and Textile Workers Union members.
The funds' trustees have ordered Trilinear Capital, which manages the monies for the various affected provident funds, to return the assets "with immediate effect", and have sent the company a letter ending all business dealings.
This followed allegations that more than R100 million has disappeared from the funds, arising from an unsecured loan to a company, Canyon Springs Investments 12.
Canyon Springs' two directors are Mohan Patel and Thandi Godongwana and its shareholders are trusts set up by the Patel, Kawie and Godongwana families. Deputy Minister of Public Enterprises Enoch Godongwana was previously a Director of Canyon Springs but says he resigned from his business interests when he moved to national government in 2009.
He says that the deal between Canyon Springs and Trilinear was done substantially before he got involved with the company and that he was not guilty of any inappropriate or irregular behaviour.