Num concerned about Tsogo Sun loan

17 July 2014 - 22:20 By Sapa
subscribe Just R20 for the first month. Support independent journalism by subscribing to our digital news package.
Subscribe now
BAPTISED BY FIRE: President of the National Union of Mineworkers, Senzeni Zokwana, left, seen here with secretary-general Frans Baleni at a NUM Congress, has had a tough time lately - just like the union he used to lead Picture:
BAPTISED BY FIRE: President of the National Union of Mineworkers, Senzeni Zokwana, left, seen here with secretary-general Frans Baleni at a NUM Congress, has had a tough time lately - just like the union he used to lead Picture:
Image: KEVIN SUTHERLAND

The National Union of Mineworkers (NUM) was concerned over Tsogo Sun awarding a R200 million loan to five of its executives, the union said on Thursday.

"As the NUM, we do not think it was necessary for Tsogo Sun to empower the five rich individuals," acting NUM spokesman Livhuwani Mammburu said.

He said NUM was disgusted by the decision of Tsogo Sun to award an unsecured loan of R200 million to five executive directors on an interest-free basis with no fixed repayment date.

On Wednesday Business Day published an article about the loan.

Mammburu said the article questioned why the majority of employees were sidelined or overlooked.

"We believe that Tsogo Sun should have empowered its 9492 employees, each worker would get at least about R10,500 worth of shares.

"This empowerment of the few individuals is an insult to the ordinary employees of the company," he said.

Mammburu said the lowest-paid workers were earning "poverty" wages.

"NUM is calling on the South African Commercial, Catering and Allied Workers Union and the Food and Allied Workers Union to take the fight to Tsogo Sun and make sure that this empowerment of the few rich individuals does not happen," he said.

subscribe Just R20 for the first month. Support independent journalism by subscribing to our digital news package.
Subscribe now