Cosatu demands reversal of Zuma deal

Johannesburg - South Africa's largest trade union federation has called on the government to reverse a multi-billion rand empowerment deal in mining that has raised criticism at home and worried investors abroad.

The request from Cosatu adds to calls for more transparency in deals which are designed to expand opportunities for the country's black majority.

"Cosatu supports the call on the government to mandate the cabinet to intervene to reverse these seriously embarrassing deals," said a statement issued by the Congress of South African Trade Unions (Cosatu).

"If they are allowed to stand, they can do the country no good." A R9bn economic empowerment deal involving ArcelorMittal SA [JSE:ACL] transferring 26 percent of its local shares to black investors including a consortium led by President Jacob Zuma's son, Duduzane, has sparked anger in Africa's economic powerhouse.

The National Union of Metal Workers of South Africa, the country's largest union that is under the COSATU umbrella, also expressed concern.

Union criticism could sting Zuma at the ANC's main policy-setting meeting next month, which is one of the ruling party's most important events.

South Africa requires firms to meet quotas on black ownership, employment and procurement to offset racism and stimulate the economy by creating a black middle class, making amends for racially based economic exclusion under apartheid.

But critics have argued the drive has enriched a small black elite.