The Manual Workers Union has accused government of secretly pursuing plans to transfer control of the GEMVAS scheme, warning that more than P1 billion in workers’ contributions could be placed at risk while lower-income public servants may be excluded from benefits
GAZETTE REPORTER
The government is facing mounting pressure over alleged attempts to hand over control of a public servants’ housing and loan scheme linked to more than P1 billion in workers’ contributions.
The Manual Workers Union is accusing senior officials of secrecy, deception and sidelining workers in a deal they claim could benefit a select few.
The allegations emerged during a heated press conference by the union’s leadership, where they warned they were preparing a petition against government over the handling of the Government Employees Motor Vehicle and Housing Advance Scheme (GEMVAS).
CLAIMS OF SECRECY AND DECEPTION
Deputy Chief Executive Officer Robert Rabasimane accused government and Minister of State President Moeti Mohwasa of misleading public servants while allegedly pushing plans to transfer the scheme to a private joint venture company.
“We have been deceived by the minister,” he said, adding that officials held consultations while pursuing “other plans behind our backs.”
He said suspicions grew after Directorate of Public Service Management (DPSM) Director Gaone Macholo allegedly stated that the scheme had been terminated due to expired bank contracts.
“That is not true because the scheme is underwritten by seven banks. How can all contracts end at the same time?” he asked.
Rabasimane also alleged that an Invitation To Tender had been issued in February for companies to take over the scheme, despite assurances that GEMVAS had been suspended.
“The tender carries February dates but does not clearly indicate when it opened. On March 13, a savingram said the scheme had been suspended, yet meetings were already taking place at the Ministry of Finance,” he said.
CONCERNS OVER WORKERS’ FUNDS
He said public servants’ contributions under the Government Loan Insurance Fund had grown to over P1 billion by March 30, 2026.
“This company is going to benefit from that money,” he said, adding that workers’ funds must not be used to benefit “a few individuals.”
He also claimed unions were previously required to contribute P6 million under UNIGEM, while the new structure faces no similar requirement.
The union fears the new arrangement could exclude lower-paid workers from accessing housing and vehicle loans.
GOVERNMENT DEFENDS PROCESS
International Relations Manager Samuel Molaodi said GEMVAS formed part of workers’ conditions of service and could not be changed without consultation.
“Government was initially happy with the UNIGEM arrangement, but things changed without explanation,” he said. Union consultant Johnson Motshwarakgole said a planned petition march on May 25 was postponed after government officials raised concerns.
DPSM spokesperson Chandapiwa Maele said government had re-negotiated with banks to ensure continuity and sustainability. She added that DPSM and unions have established consultation structures, warning that press conferences by union employees fall outside agreed labour relations processes.