Where must Mrs Vavi work.As a trade unionist myself I believe that each
and every South African be productive,and Mrs Vavi is one of us.
South African need to wake up to this biased media reports.



>  COSATU’s response to
> Mail& Guardian
> story
>
>
> COSATU has noted the report in the Mail & Guardian, 1
> April 2010, “Mrs Vavi, the pension funds and the bribe”. The
> General Secretary has responded, with the following answers to questions
> put to
> him by the M&G reporter, Matuma Letsoalo:
> Are you aware of
> the fact that your wife Noluthando is contracted
> to SA Quantum and receives R60 000 a month for doing marketing for the
> company
> [SA Quantum] within the labour Union movement, Cosatu and its
> affiliates?
>
> Yes I am aware that my wife is doing consultancy work for SA Quantum.
>  The
> agreement signed between SA Quantum and her states that she “undertakes
> to:
>       1. Furnish professional consulting services in respect of marketing,
> distribution and
> servicing strategies into the employee benefits market;
>       2. Keep quantum informed on developments, trends, political dynamics and
> key role players in
> order to improve Quantum’s understanding of the market; and
>       3. Improve Quantum’s effectiveness in distribution employees’ benefits
> solutions into
> the market.”
> In this direct quote from the
> contract, nowhere is it stated that
> she will do “marketing of the company in the labour union movement,
> COSATU and its affiliates” as your question seeks to imply. In my view
> there is no conflict of interest at all.  COSATU has no relationship
> with
> SA Quantum and if it did that would constitute a conflict of interest
> indeed.
> The provident funds of workers are controlled by workers and employers
> who have
> a 50-50 representation in the board in terms of the law. My wife has no
> relationship with any of the provident fund boards. I have no direct
> relationship with and provident fund board that has a relationship in SA
> Quantum. As far as I know no union is able to dictate to the boards of
> the
> provident funds in which company their monies should be administered.
> These
> decisions are left to the boards controlled by workers and employers.
>
> Given that you are the general secretary of COSATU, don’t you think
> the business that your wife is doing with a company that does business
> with
> COSATU and its affiliates constitute a conflict of interest?
>
> As stated above, SA Quantum has no business relationship with COSATU and I
> am
> not even aware which COSATU unions have their provident funds/pension
> funds
> administered by SA Quantum. I assume that there should be some who have a
> relationship. In that case there is no way she can influence the
> decisions of
> the provident fund boards in terms of where they invest their money or
> who
> should administer their provident funds.
>
> After COSATU first called for a lifestyle audit for public
> representatives,
> you publicly declared some of your assets, including the Morningside
> house, but
> did not mention anything about Zwelothando. Do you have any reason why
> you did
> not mention this?
> Zwelothando is a company owned 100% by my wife and not me. Secondly I
> answered all questions to me by the Star journalist honestly and
> truthfully. I
> did not hide any interest. I have no personal business interest. I am
> not
> registered in any company as a director. You can verify this with CIPRO.
>  Noluthando has a consultancy company called Zwelothando. She had that
> interest by the time we were married. I married her not because of her
> consultancy interests or business interests. I am not going to instruct
> her to
> withdraw from consultancy or even business because she is married to me. I
> don’t seek to control anyone in that manner. The only interest I have is
> that there should be no conflict of interest with COSATU and or with
> government. This is so precisely because if she was to win any contract
> with
> COSATU and or government this will raise a question as to whether she
> won it
> because she has my surname or is related to me instead of winning it
> above
> board. I have an agreement with her that she should never do any
> business with
> either COSATU or government. I am satisfied that SA Quantum indeed has
> no
> relationship with COSATU and therefore the conflict of the interest
> issues does
> not arise.
>
> Don’t you think it would have been appropriate for you to declare
> this
> publicly as well? Did you declare your wife’s business interests in SA
> Quantum to Cosatu and its affiliates, who are doing business with the
> company?
>
> I have answered this question already. I did not declare because COSATU
> does
> not have any business relationship with SA Quantum. I am not aware of
> any
> relationship between SA Quantum with COSATU affiliated unions. Even if
> there is
> as I assume there would be, the driving question to me is whether any
> observer
> would reasonably believe that I have in any way influenced worker
> provident
> funds to enter into a business relationship with SA Quantum. The answer
> is
> clear that such a possibility does not exist, as all provident funds
> board have
> a 50-50 representation between workers and the employers.
>
> It is clear from the tribute you delivered at the funeral of former
> SA
> Quantum CEO Abraham Nduru in 8 December 2009, that you personally had
> close
> ties with directors of SA Quantum, which did business with your wife.
> How do
> you explain this?
>
> I have known, and in fact have worked with, Abe Nduru for many years as
> indicated in my tribute at his funeral. I don’t know any other director
> of SA Quantum as your question suggest. Please read the speech again and
> see if
> it suggests that I know the other directors as well.
>
> Do you find it comfortable with your wife involved in business, while you
> on
> the other hand are pushing the communists’ agenda? What was your
> relationship with Nduru like? SA Quantum CEO Veon Back offered us R120
> 000 not
> to write the story about SA Quantum’s business dealings with Zwelothando
> Consulting, a name which appear to be a contraction of her first name
> and your
> first name. Already Bock gave us a payment of R40 000 and promised to
> give us
> the balance by the end of April. This is to us a clear cover up for you
> and your
> wife. What is your reaction to this?
>
> I have stated in other interviews such as Destiny magazine,
> November/December
> 2009, that sometimes that makes me feel uncomfortable. This is so
> because some
> people would not buy a suggestion that I have nothing to do with my wife
> business activities and yet I seriously never ever attempted to
> micromanage
> her. I did not her ask to enter business. This is her own initiative. I
> am not
> going to divorce her though because she has business interest. I had
> enough of
> that. Our relationship is not founded on whether she has a business
> interests
> or that I am the leader of COSATU. As I said the only protection I have
> is that
> she should never conflict me through getting into business deals with
> COSATU or
> even with the government. So far she has not done that.  Regarding Abe
> Nduru as I have said above I have known him since the days he was
> working for
> NBC. See my speech which traces the relationship between COSATU and Abe
> Nduru.
>
> Regarding the alleged attempt to silence Mail and Guardian, I
> must state
> categorically that it has absolutely nothing to do with me and the
> person best
> suited to answer your question will be the one who offered you money.
> Veon Back
> has no reason to protect either me or Zwelothando in this regard – there
> is no conflict of interests there is no scandal. Lastly Zwelothando is
> not a
> contraction of my name Zwelinzima and that of my wife Noluthando. It is a
> name
> on its own with a completely different meaning. Zwelinzima means this
> world is
> difficult/heavy/tough and Noluthando means love. Zwelothando means a
> country of
> love.
>
> ___________________________________________________________________
>
> Conveniently the Mail &
> Guardian chose not to run this
> full response to their questions, despite the General Secretary asking
> them to
> do so, through a text message to Mr Matuma Letsoalo.
> The article is a typical example of
> journalists being used to
> fight factional battles. Mr Matuma Letsoalo has a long documented
> history as a
> journalist of being used by factions in COSATU to tarnish the name of
> its
> leaders, in particular its General Secretary.
> We wish to point the following
> inaccuracies, sensationalism,
> innuendos and outright lies in the article:
> 1.    The headline of the story is: “Mrs Vavi, the pension funds
> and the bribe”. Whilst this headline seems to be an honest summary and
> caption of the story, anyone reading the headline and street posters,
> without
> reading the article, will go home wrongly thinking that Mrs Vavi is
> involved in
> some scandal that has to do with pension funds and she may have also be
> involved in bribery. This is sensationalism at its worst.
> 2.    Despite the correction printed above, the article, throughout
> and
> in particular in the first paragraph, makes a damaging claim that
> Noluthando
> Vavi “is being paid R60 000 a month to market financial products to
> union
> members”.  Mr Matuma prints this despite being in possession of the
> contract signed by Mrs Noluthando Vavi and SA Quantum that categorically
> states
> the terms of the agreement between the parties. There is no single line
> in that
> agreement that says Mrs Vavi will be “marketing financial products to
> union members”. This is being done deliberately to suggest improper
> conduct on the part of Mrs Vavi and by association the COSATU General
> Secretary, who is the real target of what is clearly a smear campaign.
> 3.    The article claims that Veon Bock, CEO of SA Quantum, told the Mail
> & Guardian that “she was engaged specifically to market its
> products which include pension and other employee benefits to labour
> unions,
> particularly COSATU unions”. The article further make the claim that
> “she has already helped secure direct and indirect business with two of
> COSATU’s biggest unions, the National Union of Mineworkers (NUM) and the
> National Union of Metalworkers of South Africa (NUMSA), which together
> account
> for about 500 000 of COSATU’s membership”.
> 4.    Whilst we cannot vouch for what was said in the discussion
> between
> Mr Veon Bock and Mr Matuma Letsoalo, we are in possession of Mr
> Motsoalo’s written questions to Mr Veon Bock and his written responses.
> At no stage does Mr Bock make the above assertions that “she has already
> helped secure direct and indirect businesses with the two of COSATU’s
> biggest unions…”
> 5.    The article then mischievously, inappropriately, and with a
> clear
> view to mislead unsuspecting readers, makes a link between the speech
> the
> General Secretary made at the funeral of Abie Nduru and the decisions of
> the
> Metal Industry Benefit Fund. The speech, which is available on the
> COSATU
> website, traces the relationship, between the General Secretary and Abe
> Nduru,
> not as a personal relationship, but one that existed between Mr Nduru
> and
> COSATU. This relationship predates the existence of SA Quantum. Yet the
> article
> seeks to suggest that Mr Nduru or SA Quantum or even with Mrs Vavi
> benefited
> from a relationship. There is no shred of evidence to suggest that
> COSATU, the
> General Secretary or his wife ever tried to influence the Metal Industry
> Benefit Fund to have a business relationship with SA Quantum as emplied
> in the
> article.
> 6.    The article then goes further to say that “Bock told the Mail
> & Guardian that Noluthando had been instrumental in securing a
> contract
> with TEBA Bank, owned by members of the NUM, Zwelinzima Vavi’s former
> union”. Again in the written reply to Mr Letsoalo’s questions Mr
> Bock did not make this claim simply because it is not true that Mrs Vavi
> was
> instrument in securing any contract between SA Quantum and TEBA Bank.
> This lie
> is being told in order to suggest that there is a conflict of interest
> that is
> not there.
> 7.    The article, consistent with its political purpose, then claims
> that “nevertheless the close political and personal proximity of the key
> players has raised concerns that the Vavis are profiting from the
> suggestion
> – however implicit – that any deal proposed by Noluthando is backed
> by her husband and COSATU”. It is true that COSATU General Secretary
> enjoys a close relationship with the General Secretaries of NUM and
> NUMSA, but
> equally he enjoys the same relationship with the leaders of all COSATU
> unions.
> It is not true that he lobbied for the election of General Secretaries
> of the
> two unions. Even if that was true that there is no relationship between
> that
> and the innuendos in the article.
> 8.    In introducing the story “On how the deal (bribery) went
> down”, Mr Letsoalo states that “COSATU General Secretary insists
> his wife’s role in the marketing financial products is no scandal. But
> the company that pays her to do it clearly disagrees”.  The article does
> not back this assertion. Mr Letsoalo merely concludes that by paying a
> bribe,
> the company was admitting guilt to some wrong doing. This is wrong and
> actually
> it amounts to character assassination.
> COSATU also condemns strongly the
> attempt by Mr Veon Bock to bribe
> journalists doing their work. This is clearly unethical and it amounts
> to an
> attack on media freedoms. The General Secretary also condemned this in
> his
> response above, a condemnation which strategically Mr Letsoalo decided
> not to
> print.
> The only sin committed by COSATU is to take a strong stance
> against corruption. This article together with other attempts before to
> turnish
> the name of the COSATU leadership will not deter us from campaigning to
> rid
> South Africa of corruption. The General Secretary of COSATU has come
> under
> immense personalised attack from those who have something to hide from
> life
> style audits. Recently he was said to own a R6 million house – when this
> was proven to be a lie, it was said that he abused a COSATU credit card –
> no evidence was produced and when these forces were challenged, then
> they
> spread a rumour that his wife is deep and has won governmetn tenders
> everywhere
> – they have not produced  shred of evidence to back this,  then it was
> said he has a two months old baby out of wedlocks – till to day they
> have
> not produced the baby and the mother. Quite clearly there is an attempt
> to
> discredit him as the principal spokesperson of COSATU. They will not
> succeed to
> silence us!
>
> Veon Bock’s responses to Mail &
> Guardian
>
> Matuma,
>
> Below are my responses to your questions. As indicated to you before,
> our
> clients are Retirement Funds and not Trade Unions. Retirement Funds are
> run by
> independent Boards of Trustees made up on a 50/50 basis by members and
> employer
> representatives.
>
> I therefore want you to read my response against this background.
>
> Regards,
>
> Veon
>
>
> Dear
> Mr BockIt is
> with regret to inform you that we are intending to publish the story on
> Friday
> on both your attempt to bribe me and the original story about your
> company- SA
> Quantum- payment to Cosatu general secretary Zwelinzima Vavi’s wife-
> Norah Noluthando Vavi. The intention from the start in my accepting
> payment
> from you was in order to expose your attempted bribe. Now, I would like
> you to
> answer the following questions for me;
>       * If there is nothing wrong with SA Quantum doing business with
> Zwelinzima Vavi’s wife- Norah Noluthando Vavi, why would you go to the
> extent of offering me R120 000 [and in fact paying me R40 000 in cash as
> the first instalment on Saturday March 27 2010] in what clearly appears to
> be a cover up for the Vavis?
> I deny paying you the sum of R40,000 in cash or offering you
> R120,000.  The agreement with Mrs. Vavi, which was entered into by the
> Late Mr Abe Nduru is above board and at no stage did Mrs. Vavi consult
> or
> market the services of SA Quantum to COSATU affiliated Retirement Funds
> nor is
> a condition of the agreement that Mrs. Vavi consult or market the
> services of
> SA Quantum to COSATU affiliated Retirement Funds.
>       * Why should I not consider the agreement to pay me R120 and the actual
> R40 payment as an attempt to bribe me and as criminal act?
> I deny that an agreement of this nature exists.
>       * Why out of all people did SA Quantum chose Vavi’s wife to do marketing
> for the company within the labour federation?
> Mrs. Vavi is an independent business woman and has a right to
> earn
> a living, as do any other individual. Why did the Mail & Guardian
> employ
> you?
>       * How much has SA Quantum paid Zwelothando since it entered in a 
> contract
> with Vavi’s wife?
> I quote clause 4 of the agreement: “4.1. In consideration
> for the rendering of the services contemplated in clause 3, Quantum
> shall pay
> Zwelothando a consulting fee amounting to 5% (five percent) of first
> year
> income on business generated for Quatum by Zwelothando. No consulting
> fees
> shall be paid unless all the retainers are paid in full.” Furthermore
> clause 5 of the agreement states that: “Zwelothando is not, and will
> never be deemed to be an employee of Quantum.”
>       * Why would it be wrong for me to assume that the payment by SA Quantum
> to Zwelothando, constitute a kick back or an attempt to influence
> Cosatu or its affiliates through Cosatu or Vavi- to channel business
> opportunities to SA Quantum?
> As explained to you before, Mr Vavi does not excercise control
> over Boards of Trustees of Retirement Funds, which are our clients and
> independent legal structures outside of COSATU. The Boards of Trustees
> are made
> up on a  50/50 basis of members’ representatives/employer
> representatives.
>       * During our first meeting, you stated that SA Quantum was doing 
> business
> with Numsa, NUM and Theba Bank, which is owned by the mine worker’s
> union [NUM]. Which other Cosatu unions are you [SA Quantum] doing
> business with within Cosatu?
> As indicated to you before, we do not
> deal with COSATU or any of
> its affiliates. We deal only with Retirement Funds, which are
> independent of
> COSATU and they make use of various service providers. I would appreciate
> it if you could respond to my questions before 10am on Wednesday, for
> deadline
> reasonsBest
> RegardsMatuma
> Letsoalo
>
>
>
>
>
>
> ________________________________
>
> Hasta Siempre la comandante
>
> Sithembewena Tsembeyi
>
> Socialismo o Muerte...
>
>
> ________________________________
>
>
>
>
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