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Zwelinzima Vavi. Picture: Bongiwe Mchunu.
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The appointment of Cosatu general secretary Zwelinzima Vavi to the board of the Industrial Development Corporation (IDC) parastatal was criticised by the DA on Thursday, December 08, 2011.
It appeared that Economic Development Minister Ebrahim Patel had used his powers to fill the IDC board with political allies, said the Democratic Alliance.
Patel was mandated by the Industrial Development Corporation Act to appoint eight of the 15 board members on the basis of ability and experience.
The SA Clothing and Textile Workers’ Union’s (Sactwu) investment group’s chief executive John Copelyn was also appointed to the board.
“… Ebrahim Patel not only has the power to appoint members of the IDC board, but he also has close ties to Cosatu (the Congress of SA Trade Unions) due to his tenure as general secretary of Sactwu,” DA MP Kobus Marais said in a statement.
It was unclear what qualified Vavi and Copelyn to serve on the board, said Marais.
Their appointment could jeopardise corporate governance at the IDC, he said.
“The board is supposed to hold the IDC, and the minister in his handling of the IDC, to account.
“If the board is stacked with minister Patel’s union allies, it may well compromise the board’s ability to conduct proper oversight.”
Marais said he would write to Patel and ask him to publicly explain why the two appointments were appropriate.
Vavi told the Sowetan newspaper: “I hope to put on the table 1/8a 3/8 decent work agenda. I am hopeful the board will support enterprises that will create jobs.”
He will retain his position at Cosatu while serving the IDC. His appointment takes effect from November 28, 2011.
Vavi said he was confident of creating more jobs and that the government supported his nomination to the board.
“Cabinet wants us to make a difference,” he told the newspaper. – Sapa
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Vavi’s appointment comes under fire