The National Union of Metalworkers of South Africa (Numsa) is facing possible seizure of money in its bank and investment accounts after allegedly failing to pay full amount owed to African Unity Life for funeral cover premiums.
In a letter dated October 19, African Unity Life attorneys Fairbridges said Numsa had failed to comply fully with a court order requiring it to pay R8.92-million by October 16. The letter states that Numsa paid R6-million on the deadline, leaving an outstanding balance.
African Unity Life demanded a further R3.13-million, including interest and legal costs by 10am on Monday.
After appearing in court this morning, Numsa has been granted until end of day to communicate on the payment of interest as they paid the other amounts on the eve of the court appearance.
Asset attachment threatened
In the letter, the attorneys warned that if the amount was not paid, they had instructions to proceed with execution against the union’s assets without further notice. This could include attaching funds held in its bank and investment accounts.
“We have been advised that Numsa paid only R6,000,000.00 on 16 October 2026, notwithstanding its unequivocal undertaking, subsequently incorporated into an order of court, to pay R8,921,171.60 by that date. Numsa is accordingly now in breach of the court order.
“You will recall that AUL was initially reluctant to agree to payment being deferred until after the hearing of the urgent application. It was precisely the possibility of non-payment, notwithstanding Numsa’s assurances, that informed our insistence upon obtaining an enforceable court order rather than simply withdrawing the proceedings. Regrettably, those concerns have now materialised,” reads the letter in part.
Premium arrears at heart of row
The dispute stems from unpaid premiums for the period from July to October. The letter explained that the outstanding capital after the R6 million payment stood at R2.92 million.
The amount demanded includes R158 427.65 in interest and R50 000 towards legal costs, bringing the total amount to R3 129 599.25 as at October 19.
The attorneys said interest was payable at the prescribed rate of 10.5% a year, calculated retrospectively from July 1 when the relevant premiums fell due.
- Numsa failed to pay the full amount of R8.92-million owed to African Unity Life for funeral cover premiums by the October 16 court-ordered deadline, paying only R6-million.
- African Unity Life's lawyers demanded an additional R3.13-million, including interest and legal costs, by 10am on Monday following the payment shortfall.
- Attorneys warned that failure to pay the outstanding amount could lead to execution against Numsa's assets, including seizure of funds in their bank and investment accounts.
- The premium arrears relate to unpaid funeral cover premiums from July to October, with interest at 10.5% per year calculated from July 1.
- Following a court appearance, Numsa was granted until the end of the day to address payment of the interest after paying the principal amounts just before the hearing.
