Workers' pensions shock

The inquiry investigating the loss of textile workers' pensions has heard that some of the money placed in a trust of a former clothing union consultant could have been used to buy a multimillion-rand Cape Town property and a luxury car.

Erwin da Gama, a friend of the consultant, Richard Kawie, was testifying in the liquidation inquiry of Canyon Springs, a company linked to Deputy Economic Development Minister Enoch Godongwana.

Canyon Springs is accused of borrowing R93m from Trilinear Capital, which manages provident funds for the South African Clothing and Textile Workers Union.

Godongwana's wife, Thandiwe, is a director of Canyon Springs, which was supposed to repay the loan in three instalments but has failed to do so, leaving more than 15 000 workers in limbo.

Da Gama told the inquiry that his company, Leading Prospect, was used as a "conduit" to move R15m from Canyon Springs to Pasima, a family trust run by Sam Buthelezi, owner of the Trilinear group of companies.

Agreements 'not genuine'

Da Gama said he paid R13m of the money into the trust and some of it to Kawie's lawyers. He admitted that his two other companies owed Canyon Springs R4m.

He said the R15m loan agreements he signed were not "genuine" and that the liquidators should order Kawie and Buthelezi to repay the money.

The union's counsel, Gavin Woodland SC, said Kawie's family trust, in which Da Gama was a trustee, bought property in upmarket Noordhoek for R4.5m and a BMW 528i used by Kawie's wife, Vanya, apparently with money from Canyon Springs.

He urged Da Gama to cooperate with the liquidators. Both Kawie and Buthelezi have launched court actions apparently to avoid testifying before the inquiry.

Source: The Times via I-Net Bridge