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Cosatu facing financial crisis, says Vavi

Johannesburg - The country's biggest trade union federation, Cosatu, is facing financial problems, its secretary general, Zwelinzima Vavi, said on Sunday.

He made the comment after announcing earlier that he would not resign.

READ: Vavi: I'm not going to resign

The expulsion of the National Union of Metalworkers of SA has impacted negatively on Cosatu's finances, he said.

READ:  ANC says Numsa expulsion from Cosatu is tragic

"Cosatu is currently living off R300 000 a month beyond its income. Cosatu staff could only be paid in February and March by raiding the Political Fund designed for other purposes...this source will dry up soon."

Numsa was expelled from the federation in November.

Numsa, with the biggest membership of over 350 000 members, has been withholding its monthly R11m payment to Cosatu, Vavi said.

"You cannot decide to kick a union out without considering the financial implications."

The dire financial situation was a recipe for a complete loss of independence for the federation, Vavi said.

"Our research institutions, Naledi and the Chris Hani Institute will have to close down and the shop steward magazine will have to close down.

"And more so, this very Cosatu house can't be maintained with the insistence of tenants to stay free."

Refusing to attend

Referring to the upcoming special central executive committee meeting to take place this week, he said he was not going to atend it.

"If my refusal to attend the special CEC is used as a pretext to fire me, then so be it," he told reporters.

"There comes a time in the life of every organisation, and every individual, when we have to submit to the dictates of our conscience."

The federation is due to hold a special CEC on Monday and Tuesday.

He said: "From this point on I will no longer participate in internal factional wrangling in the organisation. I will rather dedicate my energies to mobilising members to best of my ability," he said to the applause of members of National Union of Metalworkers of SA who had come to support him.

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