In the past 15 years South African trade unions have taken to investing money from monthly subscriptions in business ventures which, they say, will ultimately benefit members.
The reality, however, is that these investments have too often turned into get-rich-quick schemes for the union leaders, their family members and the cronies they appoint to run them.
The allegations of corruption and mismanagement within police and prisons union Popcru and its investment arm, the Popcru Group of Companies, that the Mail & Guardian has uncovered in the past fortnight appear to represent an egregious case of vanguard self-enrichment.
Trade union federation Cosatu, of which Popcru is an affiliate, is always the first trade union movement to publicly condemn corruption in government and the private sector, but it has been shockingly silent on the Popcru affair.
Among the more spectacular numbers we have reported are the R7,5-million that national treasurer (and police captain) Themba Matsane earned in 2008 and the R80-million proceeds of a share transaction that simply vanished from the books. The union federation learned of these concerns long before we did, but it has kept the story very quiet. Cosatu should not open itself to the accusation that it values subscription fees from Popcru over principles.
The evidence of impropriety and greed that we have seen is compelling and, even if a fraction of the allegations are proved, it will be a slap in the face for workers who contribute scarce money each month hoping for a better future when they retire.
Union members are the only ones who can ensure that their money is spent appropriately. They may want to ask, however, whether the entire business of union investment isn’t too vulnerable to abuse to continue. On the available evidence, the Popcru Group, for one, should be liquidated and the proceeds returned to members.
To read the first half of the editorial (“Victory a sting in the tail”) – click here