Cosatu 'firmly' favours bank, mines grab

Johannesburg - Cosatu remains firmly in support of the nationalisation of mines and the banks, it emerged on Monday.

The support for nationalisation is stated in Cosatu secretary general Zwelinzima Vavi's report to the trade union federation's fifth central committee meeting.

Vavi's report, parts of which have already been leaked to the media, will be formally presented to the meeting in a closed session on Tuesday.

On the question of Cosatu's policy on nationalisation, the report said it was firmly pro the clause in the Freedom Charter that stated the national wealth of the country shall be restored to the people.

"We are strong proponents of this clause of the Freedom Charter and this places us firmly on the side of the debate that would support nationalisation of mines, the banks and monopoly industry. Nationalisation means transferring ownership to the people as a whole with the state representing the people," the report stated.

It said the debate was both political and practical.

"Practical as the mines are now mainly in the hands of monopoly capital. Does this support that the state must confiscate all mines through legislation or must we pay compensation to the owners at market prices? (sic)," Vavi's report queried.

Referring to the government's formation of a state mining company, Vavi said that merely owning a state company to invest in mines was not nationalisation.

The government launched the African Exploration Mining and Finance Corporation in February.

"Setting up a state company talks more to an active state that plays a direct role in the mining industry with the sole purpose of accessing resources for other state activities, such (as) meeting the basic needs of the people," it said.

Vavi's report goes on to say that Cosatu was united in its demand for nationalisation as reflected in the Freedom Charter.

It said the Minerals, Petroleum and Resources Development Act placed ownership of all mineral resources in the people, meaning that mining companies are obliged to apply for and pay fees or licences to mine mineral resources.

"Nationalisation means that the state, acting on behalf of all citizens, will take over companies and their resources and transfer them to the people. This has not happened. The creation of a government mining company and the Minerals, Petroleum and Resources Development Act whilst representing advances, do not equal nationalisation," Vavi's report said.