/ 9 November 2009

Staff lockout in Nafcoc power struggle

A power struggle within the National African Federated Chamber of Commerce and Industry (Nafcoc) left a group of staff locked out of its office in Johannesburg on Monday.

”We arrived to find the building locked and the locks had been changed,” said a staff member, who did not want to be identified.

She claimed the lockout was the work of Nafhold, Nafcoc’s investment arm. ”There are people inside there destroying documents,” she said.

The group of staff locked out were associated with Buhle Mthethwa, who claims she is the organisation’s legitimate president.

Another group of staff locked inside the building claimed Mthethwa had been removed as president and replaced by Lawrence Mavundla.

Security guards patrolling the parking lot explained that they were there to keep staff associated with Mthethwa out of the building and to ensure it was not damaged in any way.

The ”new executive committee” claims that Mthethwa and her first vice-president, Vish Maharaj, have been suspended pending disciplinary charges for bringing the organisation into disrepute.

Mthethwa, who has described Nafhold’s leadership as ”thugs”, said Nafhold had told her of her removal as president of Nafcoc.

”Who took the decision?” she asked. ”Nafhold can have a splinter group, but they can’t use the name ‘Nafcoc’,” she said.

Mthethwa said she and her fellow office bearers had expected the lock-out, which ”speaks volumes about people who say they are leaders”.

Describing their occupation of Nafcoc’s premises as ”illegal”, she said they did not have an eviction notice. ”… If they want to unseat me they must use constitutional means,” she said.

In the past few months, Mthethwa has publicly said that Nafhold shares worth millions of rands have been sold at hugely discounted rates to Nafhold CEO Michael Leaf and board chairperson Joe Hlongwane.

She has charged that Leaf and Hlongwane will ”stop at nothing to protect their shenanigans”, accusing them of siphoning money away from Nafhold.

”Why has Deloitte not signed off Nafhold’s financial statements for the past four to five years?” she asked.

Mthethwa also alleged that Leaf had taken money out of the country to the United Kingdom.

”SARS [the South African Revenue Service] should investigate,” she said. She said she had reported Nafhold’s alleged irregularities to the Hawks.

Mthethwa said Nafcoc needed to reclaim from both Leaf and Hlongwane ”what is ours”.

She said she would meet with Minister of Trade and Industry Rob Davies on November 19.

Following a press conference in the parking lot, the media were invited inside the offices to meet the ”new executive committee” of Nafcoc.

Members Steve Skosana and Churchill Mrasi said anyone who thought the ANC would come to their rescue over the current Nafcoc spat was wrong. ”The ANC is a democratic organisation,” they said.

”The constituencies have passed a vote of no confidence in Mthethwa,” Skosana said, adding: ”The constituencies have decided that she must go now.”

Asked why they had locked Mthethwa and her delegation out of the building, Skosana explained that Nafcoc signed a lease agreement with the owner of the building on November 5.

”Mthethwa was informed, but decided to respond in the way she has.

”We have the security guards here as when there is a change you never know what will happen.”

He alleged that Mthethwa was angry when it was decided that Nafhold shares would be allocated, but that she was not the person who would determine the allocation.

”We told her that in terms of the constitution, the shareholders of Nafhold would decide on the allocation.”

Skosana said Nafhold’s worth had been ”zero” when it started.

It was now worth more than R1,8-billion.

”Leaf has been CEO of the company from the inception and has grown Nafhold … he’s done nothing wrong,” Skosana said. — Sapa