Amcu to give an update on financial irregularities with Labour Registrar

This time union leaders have to explain several financial irregularities emanating from its 2018 audited financial statements, which were flagged by the registrar as well as the status of its leadership structures.

FILE: Amcu president Joseph Mathunjwa. Picture: Kayleen Morgan/EWN

JOHANNESBURG – The Association of Mineworkers and Construction Union (Amcu) said it would give insight into the latest developments with the Labour Registrar at a briefing on Thursday following yet another warning that the union could be de-registered.

This time union leaders have to explain several financial irregularities emanating from its 2018 audited financial statements, which were flagged by the registrar as well as the status of its leadership structures.

Labour registrar Lehlohonolo Molefe wants Amcu to explain how over R15 million was paid to the union’s national executive committee (NEC) members as salaries. Members of the unions’ NEC are ordinarily not paid salaries as they are not full-time employees.

The registrar is also concerned about an item recorded in the financials as “rendering of services” amounting to R192 million. Molefe also questioned a R30 million operating expense, which is described as “other”.

Another anomaly flagged is that the auditors who prepared the books failed to give an opinion as required by the law. Molefe also questioned Amcu’s compliance with its own constitution in relation to elected officials who are regarded as office bearers.

In the letter sent to the union last month, the registrar reminded the union that he may cancel its registration as a trade union if it fails to comply with the law.