Johannesburg - A wave of profiteering from black economic empowerment (BEE) and labour disputes is coming to light from the covert business activities of SEESA, a former employers' organisation.
SEESA was deregistered as an employers' organisation by the Department of Labour in 2003, but electronic banking transactions and other information reveal that it is now using the National Employers' Association of SA (Neasa), another registered employee organisation, as a cover to act on behalf of its clients at the Commission for Conciliation, Mediation and Arbitration (CCMA).
It is also using a fronting company to issue empowerment certificates, the validity of which is now at issue.
SEESA pays more than R563 000 a month to Neasa from tariffs levied on its clients. Deductions of R49/month per member render some 11 500 SEESA clients 'members' of Neasa.
According to chief executive Gerhard Papenfus, Neasa has 13 984 members and has 20 full-time labour law experts in its service. It cannot therefore operate at the same level without SEESA, as alone it has fewer than 2 500 members.
On the first day of every month SEESA punctually deposits a 'consultation fee' of R55 000 into Papenfus's personal banking account. According to Papenfus, this is for full consultation services to SEESA. But Papenfus claims he recently ended this service.
SEESA was formally registered as an employers' organisation, but in 2003 was deregistered by Registrar of Labour Johan Crause, as it had 'abused' its position at the CCMA, notes Eugene van Zuydam, who was involved with the matter at the time.
Worthless certificates
"SEESA's representatives always dragged out conciliation and arbitration procedures. Some of its staff members on occasion applied for positions at the CCMA.
"During interviews with these candidates it came to light that SEESA had instructed its representatives to draw out CCMA disputes," Van Zuydam told Sake24.
Over the weekend in Rapport, Sake24 revealed how some 11 000 BEE-accreditation certificates had been issued in recent years to small business enterprises in the name of SERA, an accreditation agency created and financed by Gideon Gerber, who had established SEESA as well, together with a partner, Dries Pretorius.
Thousands of small and medium businesspeople paid between R7 000 and R29 000 for these certificates, which are apparently worthless because of the relationship between SEESA and SERA.
ABVA, the Association of BEE Verification Agencies, has received many complaints from SEESA and SERA clients about the link between the companies, and plans to present these to the Department of Trade & Industry.
On Wednesday Wilma du Plooy of Rescue Technology, which supplies instruments to businesses such as Sappi en Mondi, says her company spent more than R20 000 in 2004 to obtain a BEE certificate from SERA through SEESA.
"It was only a year later that I investigated, because they were taking their time with the certificate. If then became obvious that SEESA was not accredited and could therefore not be part of the process," she explained.
- Sake24