Cosatu ‘plundered millions from fund’
Cosatu and Zwelinzima Vavi are remaining tight-lipped regarding the latest accusations.
JOHANNESBURG - The Congress of South African Trade Unions (Cosatu) and its suspended general secretary Zwelinzima Vavi are yet to respond to accusations that the trade union federation's investment arm has plundered millions of rands from an employee provident fund.
The Sunday Times newspaper is reporting this latest development is likely to put more pressure on Vavi who is also a board member of Corruption Watch.
A secret Financial Services Board (FSB) report states Vavi was alerted to the problem involving Kopano ke Matla in 2010 but chose not to act.
Instead along with Cosatu President Sidumo Dlamini, he apparently sanctioned a R2 million settlement to make the matter go away.
Vavi is currently on suspension after he admitted to having an affair with a junior employee.
Vavi maintains the suspension is unjust as he did not break any Cosatu rules.