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fawuThe Star reports that the troubles facing the Food and Allied Workers Union (Fawu) have deepened, with labour relations registrar Lehlohonolo Molefe demanding that it must account for millions of rand in subscription income and unsecured and interest-free loans.  

In a strongly-worded letter sent on Tuesday to suspended general secretary Katishi Masemola, his deputy and other Fawu officials, Molefe threatened to remove the union from the register of trade unions or apply to the Labour Court to have it placed under administration.  At the centre of Molefe’s threats is the union’s failure to submit its annual financial statements for the 2017 and 2018 financial years, which had been promised by April last year.  Fawu’s auditors gave the union a disclaimer of opinion, the worst possible audit outcome, in 2015 and 2016 due to its failure to put in place a system of internal control over more than R73.7m in subscription fees.  Fawu, which is the SA Federation of Trade Unions’ second-biggest affiliate, has also failed to submit its VAT returns.  Molefe has furthermore taken issue with several unsecured and interest-free loans to entities linked to the union, ranging from R11,000 to almost R17m.  In addition to the 2017 and 2018 audited financial statements, Fawu must also submit statements for its investment company Basebenzi Investment Group, the agency shop and Building Trust.  Molefe has moreover demanded an explanation for Fawu’s decision to suspend Masemola over the writing off of R19.2m in Basebenzi.  Fawu has until the end of June to respond to Molefe.

Read more of this The Star report by Loyiso Sidimba at SA Labour News

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