SAMWU denies sinking members into debt with Shosholoza Finance

Bongani Bingwa speaks with Lebogang Ndawo, Regional Deputy Chairperson of the South African Municipal Workers' Union (SAMWU).

Listen to the interview in the audio below.

As many as 7,000 municipal workers in Johannesburg are reportedly under debt review, and they blame the South African Municipal Workers' Union (SAMWU).

They claim their union representatives encouraged them to take unsecured loans from Shosholoza Finance which has close ties with the union.

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The agreement between SAMWU and Shosholoza Finance states that if their members want a loan, they will go to this service provider, and payroll will pay Shoshaloza at month end.

Shosholoza Finance has hefty repayment terms meaning some workers allegedly had their entire salary deducted to pay instalments.

However, Ndawo denies that they have led members astray and says the media has sensationalised the issue.

"It is the newspaper people that allege that there are members that are complaining... It creates an impression that is not true."

- Lebogang Ndawo, Regional Deputy Chairperson of SAMWU

He says that some of their members are struggling with debt, but this is not because of just one service provider.

“The truth is that most of the people in the city of Johannesburg are taking home little money because of insurance companies.”

- Lebogang Ndawo, Regional Deputy Chairperson of SAMWU

He adds that if any member is struggling with debt or loan repayments, they can come to SAMWU's office to discuss it.

Scroll up to the audio player to listen to the interview.