Mail and Guardian
*Extracts from Mail and Guardian report on COSATU* *21 June 2013*The COSATU general secretary allegedly covered up a damning report by the Financial Services Board (FSB), which uncovered apparent cases of corruption, fraud and money laundering involving Kopano ke Matla and Westside Financial Services.
Two people with detailed insight into the report confirmed that it alleged that Kopano ke Matla conducted financial advisory services without approval in terms of the Financial Advisory and Intermediary Services Act.
Both of these people said the report recommended that criminal charges be brought against senior Kopano ke Matla staff members. It also stripped Kopano ke Matla of its licence to manage pension funds for workers. Kopano ke Matla CEO Collin Matjila is named in the report as contributing to the investment company's woes.
The loss of the licence has cost Kopano ke Matla a R700-million Bosele National Provident Fund account.
FSB spokesperson Tembisa Marele declined to confirm that criminal charges had been recommended. "What I can say, is that the FSB did conduct an investigation, which was presented to Kopano."
The FSB is by law prohibited from discussing such investigations.Kopano ke Matla is also embroiled in a fight within COSATU over the selling of its old headquarters and the purchase of a new building. It managed the deals, which are now the subject of an independent investigation by the auditors SizweNtsalubaGobodo.
Asked about his relationship with Vavi and whether he took full responsibility for the financial crisis in Kopano, Matjila said: "Please refer to the COSATU secretariat report to the COSATU 11th national congress held in September 2012 at Gallagher Estates. Book four page 49 has the Kopano report. You can access this from the COSATU website." The M&G could not find the report.
Some COSATU leaders have accused Vavi of financial impropriety in both transactions.
Those who spoke on condition of anonymity this week claim Vavi knew about the FSB report -- completed in 2011 -- but he choose not to share it with other COSATU leaders because he wanted to protect Matjila, whom they allege is a close ally of Vavi. The anti-Vavi faction also claims that he failed to intervene in a dispute involving Matjila, Kopano ke Matla and Westside director Lesley Kgomo, who complained to Vavi about Matjila's refusal to pay Kgomo R15-million for the services he provided to Kopano.
This matter, according to COSATU insiders, was settled after Kgomo approached COSATU president Sdumo Dlamini, who, in turn, instructed Kopano chairperson Prabir Badal to intervene. Badal is also national treasurer of the National Education Health and Allied Workers' Union.
Both Vavi and Dlamini refused to comment this week, citing COSATU's internal processes. Dlamini said: "I will always respect the COSATU internal process and therefore won't comment on any matter relating to such in public. Sorry."
Vavi said: "All leaders have been given [the] opportunity to make presentations including whatever evidence of any wrongdoing to the facilitators appointed by the CEC [central executive committee]. I will engage with whatever through that process."
Badal said: "I have strong ethical and moral [responsibility]. I will not get involved in any political assassination [of anyone]. Put all the questions to the CEO [Matjila] and see if he will find pleasure in answering them."
A COSATU leader accused Vavi of double standards when it came to fighting corruption. He said the report recommended the matter be reported to the Hawks for criminal investigation but Vavi did nothing about it.
"If this is done by someone who has presented himself as the champion of fighting corruption, then we should be very worried. It really raises questions.
"The upcoming CEC, which is in the second week of July, must be given a full report regarding the cancellation of the licence.
"He [Vavi] is wrong for not sharing the report with us. There is no way Vavi would not have been aware of the FSB report as he is close to Matjila. He was instructing Kopano ke Matla what to do during the selling of the old building and the purchase of the new building," the leader said.
*From: http://mg.co.za/article/2013-06-21-00-zwelinzima-vavi-covered-up-corruption-to-keep-ally-safe*
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