FRIDAY, 11.00AM:
A SOCIAL fund for improving living conditions of wine industry workers is at the heart of an out-of-court settlement being negotiated between government and KWV in an attempt to resolve the dispute over ownership of certain KWV assets during its metamorphosis from a co-operative to a limited liability company.
Agriculture and Land Affairs Minister is opposing in the Cape High Court the wine co-operative’s plans to convert to a company, on the grounds that a claimed R800-million of its assets belong to the state as a resiult of KWV’s statutory regulatory functions.
The proposed social fund will be set up over five years, using money provided by KWV’s profits. Hanekom said that the state does not expect KWV to pay the R800-million over, but wants “a trust to be created for the benefit of the industry”.
It is believed the fund will be worth between R200-million and R400-million, and the remaining sticking points in negotiations revolve around the amount to be paid by KWV and whether government and KWV should administer the trust jointly.