A National Union of Mineworkers’ (NUM) high-ranking regional official has been suspended after over R11-million in workers’ subscriptions has allegedly been unaccounted for.
According to a source who preferred to remain anonymous, the R11.2-million from Seriti Coal was allegedly paid to an agency bank account which is controlled by Highveld regional leadership instead of the NUM national subscription account.
The agency account is used to fund the training of members only as guided by the Labour Relations Act. However, the deep throat said the money was used to allegedly pay bogus service providers.
Fallout among NUM officials
The scandal has resulted in a fallout among NUM officials, with two volunteering to expose how the implicated regional leaders used the funds. These titbits are contained in several letters, which this publication has seen.
Sunday World understands that the matter will be ventilated at the union’s national executive committee meeting scheduled for Wednesday at Kempton Park. Deep throats who spoke to this publication said some leaders want to use the meeting to lift the suspension of the implicated leader.
In the first letter, sent by NUM Acting General Secretary General Mpho Phakedi to the Acting Regional Secretary Highveld Region, Thapelo Malekutu, on October 29 2024, he states that NUM’s membership office has been following up with Seriti Coal on the outstanding subscription payments since August 2023 without success.
Unusual deposits
“On reconciliation of Seriti Coal Agency fund account, the regional accountant picked up unusual deposits into the account which were more than what Seriti Coal would normally pay for agency fees deducted from their employees in terms of the agency shop agreement,” writes Phakedi.
He said after a joint reconciliation between the membership and finance department, the source of the discrepancy was uncovered.
“…The joint reconciliation revealed that the total amount paid to the Seriti Coal Agency Account erroneously amounts to R11,240,854.07.
“As at 29th October 2024, we have picked up that the bank account has a closing balance of R6,053,337.54 which is R5,186 510.53 less than what should have been refunded to the subscription account due to the fact that the region spent on the agency money that belongs to subscriptions.”
Request for refund
Phakedi then requested that the Highveld Region transfer R6-million from the Seriti Coal Agency Fund Account to the NUM subscription account.
“The balance of R5, 240 854 will have to be refunded in instalments as and when the agency fund account has money.”
On February 11, NUM coordinator Thapelo Malekutu penned a letter where he offered to spill the beans about the unaccounted millions.
In the letter, he cries foul that he has resigned from the union due to “ongoing attacks” against himself by the regional leadership.
Malekutu added that the regional leadership expelled him from the union without inviting him to a disciplinary inquiry.
He asserts that as the former regional administrator and current employee of Seriti, he was willing to volunteer any information regarding the use of the Seriti agency fee as well as details concerning the R11-million left by a former secretary.
However, in a twist of events, Malekutu wrote a letter to the NUM NEC in February to withdraw his resignation.
Resignation
In the letter, Malekutu accuses one of the Highveld regional leaders of misleading and pressuring him into using R4-million of funds allocated “for subscriptions, falsely justifying them as Seriti agency fees.
“Despite my inquiry confirming that the Seriti agency fee had been terminated some time ago, he insisted that his influence within the NEC would prevent any consequences,” wrote Malekutu.
NUM coordinator at Seriti, Pinky Maseeme, in FeFebruary also complained that she was expelled by a high-ranking leader in the Mpumalanga region.
“I would like to bring to your attention that the [high-ranking official] was aware of the Seriti subscriptions paid to the agency fee account and he advised and continue to use the funds for personal gains.
“Additionally, there is evidence of how he personally benefitted from these funds by using other people’s accounts.
Internal processes
“I am prepared to provide necessary evidence at the appropriate time,” wrote Maseeme.
When approached for comment, Phakedi said: “The NUM has internal processes for dealing with matters.
“The NEC has appointed a task team to investigate the allegations and report.
In the interest of allowing a fair process, the NEC has applied precautionary suspension until the investigation is concluded,” said Phakedi on Tuesday.
