By Levy Masiteng
The Congress of SA Trade Unions has demanded transparency and accountability from the Unemployment Insurance Fund (UIF) regarding a controversial R807 million bailout to Siyanda-Bakgatla Platinum Mine (SBM), despite the company being deemed solvent.
This follows Employment and Labour Makhosazana Meth ordering an investigation into the SBM scheme in March after the company allegedly received the first payment of R67 million in February.
“But now it appears that while the public was awaiting the outcome of the investigation, the company was paid a further R61 million in May,” Cosatu said on Tuesday.
“The slight drop in the payment was attributed to some of the workers having been retrenched. Two other payments of R61 million were then effected in June and July.”
The federation wants to know the outcome of the investigation, calling on Meth to share the report with the public and table it at the National Economic Development and Labour Council.
SBM was initially rejected for financial relief from the UIF’s Temporary Employer/Employee Relief Scheme (TERS) in early 2024.
However, the acting director-general of the Department of Employment and Labour, Viwe Mlenzana, later approved the scheme and he has since left the department.
Cosatu spokeswoman Zanele Sabela said that an independent auditor’s report revealed that SBM was not in financial distress when it applied for relief.
“In fact, its current ratio and debt to equity ratio showed that SBM’s finances were in a healthy state so much so it declared a dividend to shareholders,” she said.
Despite this, the company received payments totaling R189 million in February, May, June and July.
Cosatu is demanding confirmation from the board if the investigation was conducted and called for the Special Investigating Unit to probe the UIF and the SBM scheme.
It has reiterated its demand that the UIF be placed under administration.
It also wants the Standing Committee on Public Accounts to summon Meth, the UIF, labour and business to account for the UIF’s failures to deliver.
“We further call on all employers, workers, trade unions and officials within the ministry and UIF to report all wrongdoing in the UIF and other related funds to law enforcement agencies,” Sabela said.
Cosatu said there was a need for stricter oversight and management of the UIF to prevent abuse and ensure that the fund served its purpose of supporting workers in need.
INSIDE POLITICS