The South African Medical Association Trade Union (SAMATU) calls for the Administrator to leave no stone unturned to find the workers money that was misappropriated by the South African Medical Association. The South African Medical Association Trade Union is the largest Union representing doctors in South Africa, providing labour related services to doctors employed in both the private and public health sectors.
Since the registration of SAMATU in 1996, the affairs of the Trade Union had been mismanaged by SAMA NPC, which is a voluntary professional medical association with their own membership. By their own admission they estimated the total combined membership at 16,000 of which SAMATU represents 55%. However, SAMA NPC still denies the existence of SAMATU and continues to feed misleading information to the membership while it was benefiting financially from the income stream of public service doctors.
During the period 1996-2020 SAMA NPC managed SAMATU as a “division” without complying with the Labour Relations Act 66 of 1995 as prescribed. Only registered Trade Unions may exercise organisational rights as per Sections 11 to 15 of the LRA 66 OF 1995 and have access to PERSAL subscription deductions including contributions from the Public Service Coordinating Bargaining Council (PSCBC). SAMA NPC unlawfully accessed the PERSAL system since 1996 presenting themselves as a complying Trade Union. It is obvious that the benefits were greater than the transparency.
The LRA is very clear regarding the management and the affairs of Trade Unions.
As a result of regulatory concerns regarding the independence and non-compliance of SAMATU whilst being mismanaged by SAMA NPC, SAMATU was placed under administration in October 2019. This was done to ensure that it complies with all the statutory and constitutional requirements as prescribed in the LRA.
This was a corrective and progressive decision agreed to by both SAMA NPC and SAMATU to secure the interests of employed doctors and establish the legally required independence of the Trade Union.
On the 27th of February 2020, the Labour Court considered qualified administrators to manage the affairs of SAMATU. Mr. Vosloo was appointed as the Administrator of SAMATU and given the responsibility to execute the judicial mandate as reflected in the “Terms of Reference” annexed in the Labour Court Judgement of the 10th of October 2019 as agreed to by SAMA NPC and SAMATU.
After his appointment the Administrator engaged with SAMA NPC on various occasions to find an amicable transition into independence of SAMATU. SAMA NPC refused to cooperate, particularly when it was required to present its financial records for scrutiny by an independent forensic auditor whose appointment was as a result of the court order.
The Court Judgements below will assist in explaining the matters that may be of concern and not ventilated before:
· 10th of October 2019 Labour Court application for Administration Read Attachment
· 27th of February 2020 Labour Court appointment of the AdministratorRead Attachment
· 18th of June 2020 Labour Court Judgement in favour of SAMATURead Attachment
· 25th of June 2020 Labour Court Judgement dismissing the appeal in favour of SAMATU (Awaiting SAMA NPC’s desperate petition for leave to appeal in the Labour Appeal Court)
· 17th of July 2020 High Court Judgement struck SAMA NPC application with scathing remarks by the Judge. Read Attachment
For the record it is worth noting that SAMA NPC has never kept separate bank accounts and financial records on behalf of SAMATU as required by the LRA.
Herewith an analysis of the unlawful collections made by SAMA NPC for their own account on behalf of SAMATU which is in the process of being recovered from SAMA NPC.
· Public Service subscriptions through PERSAL R291 million (1997-2020) *
· SANDF subscriptions through PERSAL R4 million (1999-2020) *
· PSCBC bargaining council contributions R12 million (2005-2019) *
· National Health Laboratories South Africa (Under investigation)
*The above exclude accrued interest of approximately R300m for the periods (Prescribed interest calculated by the appointed Actuary)
As result of SAMA NPC’s obstructive behaviour in not providing the Administrator with the required information as instructed by the court orders, it became impossible for the Administrator to execute his judicial mandate.
After exhausting all legal remedies, the Administrator had no other option but to apply for the winding up of SAMA NPC.
Issued by SAMATU
Media and Communications Officer Bokang Motlhaga
012 943 5770 072 220 9346