Johannesburg - One of Cosatu’s troubled affiliates must hold its long-delayed national congress by the end of September after years of bickering among its leaders mainly over the mismanagement of investments worth billions of rand.
The Chemical, Energy, Paper, Printing, Wood and Allied Workers' Union has been under administration following Registrar of Labour Relations Lehlohonolo Molefe’s intervention after it was embroiled in leadership clashes primarily over its company, Ceppwawu Investments, which has a portfolio worth nearly R2 billion, according to papers filed at the Labour Court in Braamfontein, Johannesburg.
Its former leaders, members and employees have launched several Labour Court applications in desperate bids to wrestle control of Ceppwawu from a succession of administrators appointed by Molefe to run the affairs of the beleaguered union.
Business rescue specialist Sipho Sono’s opponents accused him of asking for a R107 million loan from Ceppwawu Investments, which they felt was grossly excessive and entirely out of kilter with what is needed to run the union’s affairs.
However, the Labour Court accepted that Sono had offered proper explanations for the loan.
Ceppwawu had 84 279 members in 2015, but by the time of Cosatu’s four-day national congress in September last year, it had 47 388. The federation also identified Ceppwawu among four of its affiliates experiencing challenges that required its continued support.
Dozens of former leaders, members and employees hauled the union to the Labour Court, including its immediate past general secretary Welile Nolingo, seeking to overturn Molefe’s placing it under administration and the appointment of chartered accountant Thulisile Njapa-Mashanda to run it.
Njapa-Mashanda was ousted as Ceppwawu’s administrator in March last year following a period in which she axed several top union officials and staff since her appointment in 2020.
Sono, who is also state-owned low-cost airline Mango’s business rescue practitioner, replaced Njapa-Mashanda for a six-month term as interim administrator.
Later on, union officials Sakhiwo Zako and Mzwandile Mpofu, who had sought to overturn their retrenchments by Njapa-Mashanda, applied to have Sono held in contempt of court for failing to adhere to their earlier court victories in terms of which it was ordered that they be reinstated.
Zako and Mpofu successfully got Sono sentenced to three months’ imprisonment, which was suspended for 12 months on condition he complied with Judge Zolashe Lallie’s order.
Further challenges before the Labour Appeal Court are pending.
Last month, Acting Judge Sean Snyman extended Ceppwawu’s administration until December 12 this year and declared that Sono would be the union’s administrator with full powers during this period.
The judgment provides that “Sono shall appoint an experienced and reputable facilitator to ensure that congresses (are) convened in terms of the constitution of Ceppwawu to elect a new national leadership of Ceppwawu”.
He set a deadline of September 30, 2023 for the election of leaders.
“The control, management and affairs of Ceppwawu shall be handed to the new leadership elected… upon expiry of the period of administration under this order on December 12, 2023, unless extended further by this court on application by the registrar (Molefe),“ Acting Judge Snyman stated.
He ordered that Sono be required to consult with interested parties when deciding the proper and effective governance and administration requirements to be put in place for Ceppwawu.
Sono declined to respond to The Sunday Independent’s questions this week on whether he would meet the set deadlines, saying he did not comment publicly on Ceppwawu matters.
“It does not assist my process,” he added.