The South African Union of Journalists (SAUJ) has ordered a forensic investigation into its financial affairs — one of several measures to pinpoint how the union got near bankruptcy.
Amid rumours of money squandering, inadequate accounting in two sets of books and concern about union staff’s salaries and benefits, the SAUJ last weekend held a special congress to put it on a sound financial footing.
SAUJ general secretary Motsomi Mokhine has until mid-June to raise enough money to tide the union over until the end of the year. The International Federation of Journalists is expected to consider an appeal for financial support this weekend.
If the fund-raising is unsuccessful, restructuring — including the national office — is on the cards to trim costs. And a final R250 000 loan will be taken from the Joint Journalist Unemployment Benefit Fund (JJUBF), funded by the interest on a share portfolio of approximately R4-million, to fund the SAUJ’s day-to-day running.
Acting treasurer Joel Avni, who submitted a report on the union?s financial status, said he remained concerned about this loan despite the pledge to repay it over 10 years — the money would effectively eat into the investment capital.
“We spend more than R1-million a year running our operation, but take in less than R300 000 a year from members’ subscriptions. We have been making up the deficit by drawing funds from the JJUBF.”
The precarious financial situation was discussed as far back as May 1999. Since 1996 the JJUBF has supported the union’s operation. What started out as a repayable R50 000 loan that year escalated to more than R665 000 last year. It has become common practice to write off such loans.
A report from the forensic investigators is expected within three months. It is hoped it will end rumours about financial mismanagement and clarify confusion on, for example, apparently unauthorised travel to Nigeria and Zambia by former union president Sechaba ka’Nkosi.
The union says it is seeking legal advice on possible steps against Ka’Nkosi, who was president without actually being an SAUJ member. The union is concerned because Ka’Nkosi represented it at various meetings and agreements.