The National Union of Metalworkers of South Africa (Numsa) on Monday said it was concerned about a report on the way the Industrial Development Corporation (IDC) was using public funds.
”Numsa views this as a broader reflection of a growing culture and obsession with crass materialism and lust for luxurious gains by those in positions of authority and power,” it said in response to a report that the IDC allowed its jet to be used to take staff to the funeral of a non-staff member.
The report in the Sunday Independent last week, based on a complaint by the presidency to Trade and Industry Minister Rob Davies, also bemoaned a R500 000 farewell party for IDC board chairperson Wendy Luhabe, who has had her stay extended by a year, and private chauffeur arrangements.
Luhabe is married to Mbhazima Shilowa, a co-founder of the African National Congress (ANC) breakaway group, the Congress of the People (Cope).
Numsa said: ”It is disheartening that in a country ravaged by legitimate service delivery protests, high income inequalities, grinding racialised poverty and skyrocketing cost of living, those in positions of influence are irresponsibly looting public funds.”
Referring to job losses and economic difficulties, the union claimed the corporation was using R12-billion meant for firms in distress.
”As Numsa, we strongly believe that IDC funds and programmes should be channelled into structured developmental objectives in improving the conditions of the workers and the poor.”
IDC divisional executive for marketing and communications, Neo Sowazi said they were preparing a report for the minister on the matter.
The report quoted IDC chief executive Geoffrey Quena saying the jet offered a quick and cost-effective trip to the funeral. A meeting in Mauritius, which included spouses, had been ”strategic” and ”beneficial”, he said.
IDC head earns R10,3-million
Meanwhile, according to the IDC’s 2009 annual report, tabled in Parliament, CEO Qhena earned a total of R10,297-million in the year to March 31 — up from R7,259-million the previous year.
Qhena’s basic salary was R2,673-million, his long-term incentive bonus R2,544-million, his performance bonuses R4,392-million, and benefits such as medical aid, retirement fund and insurance contributions R688 000.
The performance bonuses represented amounts payable for achieving certain objectives aligned to the corporate targets.
The objectives were approved by the IDC board at the beginning of each period and the amount paid was based on the performance of the corporate team and individual.
IDC chief financial officer Gert Gouws earned a total of R6,940-million — R1,826-million basic salary, R1,413 long-term incentive bonus, R2,354 performance bonuses, and R1,347 benefits. — Sapa