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Union mulls class action against errant municipalities


Trade union federation, Fedusa, has rejected any proposed debt write-off for Eskom and called for the power utility to be placed under business rescue.

Acting general secretary, Riefda Ajam, said they were also "strongly considering" a class action lawsuit against municipalities that collect utilities from ratepayers but fail to deliver services.

The leadership of Fedusa met on Monday to discuss the crises "ravaging state-owned entities", with a focus on Eskom.

Ajam said the Federation rejected the proposal to "raid R254 billion of public servants pension money warehoused in the Public Investment Corporation to bail-out the utility".

"Decisive action to address the root of the evil at all SOEs, the destructive levels of corruption and corporate governance failures must be prioritised," she said.