By Lunga Simelane
The National Union of Metalworkers of South Africa (Numsa) has accused the former chief executive of its investment arm, Khandani Msibi of attempting to seize control of the Numsa Investment Company (NIC), alleging he concealed financial information for six years, obstructed oversight and fraudulently claimed ownership of a majority shareholding.
In a statement on Thursday, the union said it had uncovered what it described as a deliberate scheme by Msibi to capture the investment company for personal gain, prompting it to publicly rebut allegations he has made in recent media interviews.
Numsa alleged that while serving as chief executive, Msibi withheld financial reports and audit information from the union and its board, allowing him to operate the investment company without meaningful oversight.
The union claimed this enabled him to make decisions that benefited himself while frustrating attempts by board members to exercise their governance responsibilities.
“Now that we have become aware of his conduct, we know that he deliberately withheld information and obstructed financial reporting and auditing for six years,” the union said.
It further alleged that Msibi rewarded employees who supported him, sidelined those who questioned his conduct and manipulated appointments within the company to advance what it described as a culture of corruption.
Numsa said the situation had left its own board representatives unable to properly oversee the affairs of the investment company because they were allegedly denied access to information necessary to make informed decisions.
The union accused Msibi of remotely controlling the investment company while portraying himself publicly as a victim.
“He has the audacity to attack Numsa leadership, including the board of the investment company, on social media and in media interviews despite having defrauded workers of their hard work,” the union said.
The latest escalation follows an ongoing dispute over Msibi’s claim that he owns 60% of the Numsa Investment Company.
Numsa though ,rejected the claim outright, arguing that Msibi had failed to provide evidence showing where the shares were registered or that they had been lawfully transferred in accordance with financial sector regulations.
The union questioned how a serving chief executive could have sold shares to himself without an independent process, describing such a transaction as a clear conflict of interest and potentially corrupt.
“It has never been seen in the world where a CEO can sell shares to himself without any third party being involved,” Numsa said.
According to the union, Msibi had repeatedly failed to answer questions about how he acquired the shares or whether the necessary regulatory approvals had been obtained.
Numsa said the board of one of the investment company’s subsidiaries had consequently cancelled the disputed shares after Msibi failed to demonstrate that they had been legally registered.
It maintained that workers, through the union, remain the lawful owners of 80% of the investment company’s shares.
The union also dismissed Msibi’s media campaign as an attempt to mislead workers and the public while avoiding questions about his conduct.
Numsa General Secretary Irvin Jim accused the former executive of refusing forensic audits, resisting accountability and undermining the investment company established in 1998 to improve benefits for union members.
While describing Msibi as a “rogue” and “criminal element”, the union said it believed the courts would ultimately determine his legal culpability.
The union insisted it would continue defending the investment company on behalf of its members, saying its priority was to ensure that workers retained control of an institution established to strengthen their long-term financial interests.
