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Fired Employee Loses Labour Court Appeal over Running Loan Shark Business at Work

A former Free State National Botanical Gardens employee who was fired for running a loan shark business at work lost his appeal at the Labour Court to regain his job.

Monapole Daniel Kaweng worked as a skilled machine operator and shop steward before being found guilty of participating in an illegal money-lending scam at work.

His firing occurred when a whistleblower informed the company that a loan shark was operating at the Botanical Gardens during working hours, although the source did not name him in June 2019.

The case was then examined, and a forensic report was prepared, implicating a senior artisan, Mr Zola, who was discovered to be involved in a scheme in which employees were charged interest rates of up to 50%.

The forensic report does not implicate Kaweng.

A disciplinary hearing was held, which resulted in Mr Zola’s discharge, but before he could leave, he implicated Kaweng in the conspiracy.

This resulted in Kaweng’s dismissal in August 2021.

He filed a complaint with the Commission for Conciliation, Mediation, and Arbitration (CCMA) after being dissatisfied with his dismissal.

At the CCMA, he claimed that he was participating in a stokvel, not an illegal money lending enterprise.

During cross-examination, he admitted that some persons borrowed money from the scam he was involved in, and that interest was levied in 2017. He claimed he disagreed with the decision and ended his membership.

However, his claim that he was a member of a stokvel was denied.

“A stockvel is a savings or investment society to which members regularly contribute an agreed amount and from which they receive lump sum payment. The definition of a stokvel does not include the borrowing of money to others,” read the judgment.

As a result, the CCMA found find that the sanction of dismissal was appropriate.

It was added that even though Kaweng had left the scheme in December 2017, he failed to inform his employer of what was happening and that it had escalated to a full money lending scheme.

Kaweng took the matter to the Labour Court in Johannesburg on appeal.

Acting Judge Myburgh said it was necessary to reflect on Kaweng’s evidence.

Kaweng testified that he had formed a stokvel together with Mr Zola and another member, to “just put money together so that at the end of the year we can share [it] amongst us…there was no lending of money it was only for us,” he said.

In 2017, they were joined by a woman who changed the laws of this stokvel and they started loaning money to employees and charged interest.

Because he knew that a money lending scheme had to be registered with the National Credit Regulator (NCR), he tried to quit the stokvel but he was told he was already in and can only leave in December when they shared the money.

The judge said even if the money lending scheme was somehow not in breach of the National Credit Act, the CCMA’s decision to uphold the dismissal would, nevertheless, have been reasonable.

“For the duration of 2017, the applicant (Kaweng) participated in the money-lending scheme at work with fellow employees apparently charged exorbitant interest rates,” said the judge.

“…Although it might be considered harsh, a decision to the effect that this constituted serious misconduct warranting dismissal, nevertheless, falls within a range of reasonableness and is thus not reviewable.”

Based on his participation on the money-lending scheme, his application was dismissed.

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