Thursday, June 9, 2011

Deputy Minister Linked To Missing R100m

Jun 9, 2011

Deputy Minister of Economic Development Enoch Godongwana and his wife Thandiwe have been linked to a company that disappeared with R100 million in workers' pensions. 

 
Enoch Godongwana

The SA Clothing and Textile Workers' Union (Sactwu) is trying to get back the R100 million of pension funds from an investment company. 

The money was placed with Trilinear Empowerment Trust, which in 2007 agreed to lend R93 million to Canyon Springs Investments 12, so that it could buy an unnamed and unlisted company, but the deal never happened, The Star newspaper reported on Thursday.
Canyon Springs Investments 12 could not repay the loan as it had allegedly "lost" the workers' money. 

Canyon Springs is currently facing liquidation proceedings in Cape Town. 

The Godogwanas acknowledged to The Star that one or the other of them had been linked to Canyon Springs since at least November 2007. 

In a joint statement, they said Enoch was chairman from November 2007 to May 2009, while the wife had been a non-executive director since May 2009. 

The loan payments were made from March 2007 to December 2009, and the loan agreement was signed in February 2009. 

Cosatu said on Tuesday it was "shocking" that the low-paid clothing and textile workers could lose millions through the loan that was allegedly "lost". 

"If these allegations are proved to be true, it is absolutely shocking. Textile workers are the lowest paid workers in the whole of the manufacturing sector," Cosatu spokesman Patrick Craven said in a statement, at the time. 

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