The National Council of Trade Unions (Nactu) has expelled its treasurer over allegations he made of financial mismanagement. But Zayne Marimuthu has challenged the decision in revelations that increasingly point a finger at the financial management practices of the federation’s general secretary, Cunningham Ngcukana.
Confirming the expulsion, Ngcukana referred to Marimuthu as an ”agent provocateur”.
Marimuthu was to have appeared before a special central committee meeting to answer a range of charges including statements to the Mail & Guardian regarding financial irregularities [Nactu targets whistleblower]. But in a written submission Marimuthu stated his unwillingness to attend the meeting because he feared for his safety.
In his submission Marimuthu denies ”any wrongdoing” and reiterated his demand for a forensic audit of the finances of Nactu. He tells how in November last year he became aware of Ngcukana’s unfettered power and control over decisions affecting Nactu, especially financial ones. Marimuthu says Nactu has not produced an audited financial statement in the past two financial years.
Upon taking up a position as a director of Nactu Investment Holdings (NIH) along with a new board, Marimuthu discovered a transfer of R16-million made to Nactu that was not accounted for.
Asked about the amount, Nactu president Joseph Maqhekeni denied that any transfer of that amount had taken place, acknowledging instead an amount of R5-million that has since been accounted for. But the minutes of an NIH board meeting confirms the transfer of R16-million, expressed as a concern by NIH auditors.
Ngcukana has been increasingly questioned by the board and Marimuthu over his involvement in Nactu’s financial affairs. Marimuthu says the new board discovered that Ngcukana was drawing a director’s fee of R7 000 a month, which he referred to as a ”consultancy fee”. The board stopped the payment of the fee in February.
Minutes of a board meeting in December last year reflect that the board also questioned Ngcukana’s decision to invest in the stalled publication The Enquirer on behalf of the NIH using his property and R100 000 of NIH funds obtained without board approval.
NIH CEO Thoko Obisanya was chastised by the board for allowing this transfer of funds.
Marimuthu says Ngcukana’s only reason for selling assets is to alleviate short-term financial crises of the federation, which is ”technically insolvent”.
He had refused to allow any transfer of funds or to be party to expenditure decisions until Nactu had been subject to a forensic audit.
Related:
Nactu targets whistleblower 06 December 2002
Nactu finances questioned 29 November 2002