KEY POINTS
- Samwu demands R9.6 million ($519,719) from ex-official over missing funds.
- Free State High Court rules it lacks jurisdiction in the case.
- The union is considering appealing the decision or refiling the lawsuit.
The South African Municipal Workers Union (Samwu) is demanding R9.6 million ($519,719) from former deputy general secretary Moses Miya, accusing him of misappropriating the funds over three years.
Miya, who held leadership roles in the union between 2012 and 2018, was suspended following an audit by Ernst & Young, which flagged significant financial irregularities.
Despite criminal charges of fraud, theft, and money laundering laid against him in 2015, the case was struck off the roll in 2017.
Samwu later filed a civil lawsuit against Miya in the Free State High Court, aiming to recoup the lost funds.
Court rules against Samwu on jurisdiction
Two weeks ago, Judge Joseph Mhlambi ruled that the Free State High Court lacked jurisdiction to handle the case.
Miya’s legal team successfully argued that he resided in Gauteng, making the union’s filing in the Free State invalid.
According to IOL, his defense also pointed out that Samwu delayed filing the lawsuit until 2023, years after the alleged fraud occurred.
Additionally, Miya challenged the union’s decision to exclude Old Mutual Super Fund Pension Fund as a defendant. He called this omission a critical legal oversight.
Samwu considers appeal amid legal uncertainty
Following the ruling, Samwu General Secretary Dumisane Magagula said the union is reviewing legal advice. He stated that they may appeal the decision or refile the case in another jurisdiction.
“We are considering all legal options,” Magagula said. “Our priority remains to recover the lost funds and ensure that the union’s finances are accounted for.”
Despite the setback, Samwu remains confident in its case, citing the Ernst & Young audit findings as evidence of financial mismanagement.
