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Cosatu to launch corruption watchdog

Cape Town - Cosatu secretary general Zwelinzima Vavi has put pressure on the ANC to address “outrageous” executive salaries, the big racial income gap and the infiltration of corrupt officials in the ruling party.

Addressing the South African National Textiles Workers’ Union (Sactwu) in Cape Town, Vavi declared the labour federation’s support of the ANC’s 2011 municipal election campaign.

But he warns that in some areas it is going to be very difficult to convince people to “stay with the ANC”.

For this reason, Cosatu’s support comes with conditions.

He warned that Cosatu would not be supporting any “corrupt” or “lazy” election candidates.

Cosatu plans to build a powerful anti-corruption institution of civil society – a so-called corruption watch - with a team of lawyers, accountants and auditors to conduct preliminary investigations, and process these with the relevant authorities.

He also outlined how workers expect the ANC to reduce inequality in South Africa as it has promised.

Lamenting how, nearly 16 years after democracy, workers were still being exploited and had not tasted the economic fruits that were promised in 1994, he argued that private capital had benefited most from freedom.

“In South Africa the top 20 paid directors in JSE-listed companies earned on average 1 728 times the average income of a worker, while even state-owned enterprises paid CEOs 194 times an average worker's income,” said Vavi before getting more personal.

“The most outrageous examples are the banks' CEO pay packages. Nedbank CEO Tom Boardman earned R43m last year, Standard Bank CEO Jacko Maree R18, 2m and Absa CEO Maria Ramos R13.5m,” said Vavi, who questioned why inequality is also still racialised and gendered.

Racial income gap

In 2007, he argued, whites were earning eight times more than blacks.

“An average African (black) man earns in the region of R2 400 per month, whilst an average white man earns around R19 000. The racial income gap is therefore roughly R16 800 among males. Most white women earn in the region of R9 600 per month, whereas African women earn R1 200.

“So the racial income gap among women is R8 400. Approximately 71% of African female-headed households earned less than R800 a month and 59% of these had no income,” he said.

There is also racial bias within management.

In the private sector, top managers are 60% white male, 14% white female, 9% black male and 4% black female.

Coloured and Indian males account for an average of 4% of top management, while females account for an average of 1.4%. Thus 74% of top management is drawn from 12% of the population.  

Vavi, who is expected to take up a position on the ANC national executive council if not in cabinet after 2012, also had a go at civil servants and politicians who have private business interests.

“Even if they are not benefiting corruptly from government tenders, ministers and officials who are also in business to make money have an inevitable conflict of interest,” said Vavi.

He pointed out that the danger always exists that in formulating policy in parliament, a provincial legislature or municipal council, officials and politicians could be guided by the impact this would have on their businesses rather than the broader public interest.

“Of particular concern is the ‘new tendency’ of ‘tenderpreneurs’, drawn from the ranks of corrupt officials, which has infiltrated the ANC itself.

“It is a small faction without any political ideology but interested in taking control of the movement to accumulate personal wealth,” said Vavi. He added that this self-enrichment was a problem in the trade union movement itself. 

 -  Fin24.com
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