Unions step up fight against state capture

Unionists are stepping up the fight against state capture with a demand to sit on the board of the Public Investment Corporation (PIC) — where public sector workers’ pension funds are held — and a criminal charge laid against Trillian and Eskom.

SA Federation of Trade Unions (Saftu) general secretary Zwelinzima Vavi is taking on Eskom‚ Trillian and McKinsey‚ while the Federation of the SA Trade Unions (Fedusa) on Wednesday weighed in on the upheaval at the PIC.

Further charges of fraud‚ theft‚ corruption and money-laundering were laid against Eskom and Trillian by Vavi‚ while Fedusa wrote to Finance Minister Malusi Gigaba‚ demanding representation by workers on the board of the PIC.

This follows a mass march by Cosatu‚ the country’s largest union federation‚ against state capture last week.

Saftu and Fedusa are the country’s second and third-largest federations.

This comes as government continues to dither over dealing with mounting evidence of state capture.

President Jacob Zuma has yet to set up a judicial commission of inquiry into state capture‚ despite the ANC national executive committee saying such an inquiry was “urgent” in May.

Saftu is understood to be pursuing the recovery of billions from the contract between state-owned entities and Trillian after a raft of allegations in the public domain‚ which have not yet been prosecuted by law enforcement agencies.

In a charge laid by Vavi at a Johannesburg police station‚ he says “the allegations and evidence implicating Trillian in criminal activities have been in the public domain for many months now”.

“Saftu calls upon the South African Police Services and the Directorate of Priority Crimes Investigation (the Hawks) to investigate Trillian Capital Partners (Pty) Ltd … and its subsidiary and associated companies and the directors of Trillian at the relevant time and any other implicated persons‚ for the crimes of fraud‚ theft‚ corruption and money-laundering relating to Trillian’s dealings with Eskom and Transnet‚” he wrote.

“The evidence in the public domain establishes a clear and compelling case of suspected criminal wrongdoing on the part of Trillian and its directors.”

Vavi says that the allegations against Trillian are “patently serious and urgently require investigation by the DPCI (the Hawks) and the other relevant law enforcement authorities”.

To prove this‚ he relies on evidence already in the public domain‚ including the public protector report on state capture‚ an internal forensic report by Eskom that recommended the laying of criminal charges against Eskom and Trillian‚ a report by Advocate Geoff Budlender and the evidence of key whistle-blowers.

In a letter to Gigaba from Fedusa general secretary Dennis George‚ he invokes the PIC Act to “ensure that the future of our members’ pensions can be secured and that organised labour can play a more meaningful role on behalf of our members”.

“You are hereby requested to issue a call for nominations from organised labour to appoint union representatives to the PIC’s Board of directors‚ in accordance with the PIC Act. We understand that Section 6 of the PIC Act‚ in relation to organised labour‚ has never fully been applied in practice‚” George said in the letter to Gigaba.

“We now call upon you to invoke this section and to give recognition to the rights of public sector workers who are the biggest contributors and investors to the GEPF (Government Employees Pension Fund)‚ and the assets managed by the PIC.”

George said in the letter that the federation “reserved its rights” and would seek further legal advice on allowing unionists to sit on the PIC board.

Wednesday’s push by both Saftu and Fedusa applies further pressure on government to act against state capture.

Given government’s inaction‚ the matter may yet end up in court after the raft of criminal charges laid by various opposition parties‚ labour and non-governmental organisations.

- BusinessLIVE