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The seven Chinese nationals who were arrested last year for alleged human trafficking and violation of the country’s labour laws owed the Department of Employment and Labour more than R7-million for contravention of labour laws.
Testifying on Wednesday in the bail hearing of the Chinese nationals before the Johannesburg Magistrates Court, Department of Employment and Labour Gauteng Provincial Chief Inspector, Advocate Michael Msiza to the Court that the Department had submitted a statement requesting that further criminal charges be imposed on the accused for contravention of the labour laws.
The accused in the matter are: Kevin Tsao, Chen Hui, Qin Li, Jiaqing Zhou, Ma Biao, Dai Junying, and Zhang Zhilian. The seven Chinese nationals were operating a factory called Beautiful City Pty Ltd located at Village Deep in Johannesburg.
The seven Chinese nationals - four males and three females were arrested on (November 12 2019) in a joint operation conducted by the Department of Employment and Labour’s Inspection and Enforcement Services (IES) branch in Gauteng together with the South African Police Services (SAPS), Home Affairs and the Hawks Unit. The arrests followed a tip-off that the Chinese nationals were allegedly involved in the trafficking of illegal immigrants and subjecting them to forced labour.
During the blitz 91 Malawian nationals were found in the factory, 37 of them were children. The Court has since heard that the Malawians working in the factory were transported to South Africa through containers. The accused are alleged to have been brought to South Africa by a middleman known as “the transporter” who is still on the run.
In an affidavit submitted by the SAPS/Hawks in Court, the authorities intend to charge the accused with schedule six offence. The accused will face charges ranging from human trafficking, debt bondage, kidnapping and pointing of a firearm. The Department has filed a statement requesting additional charges - those of contravention of labour laws be added.
Msiza told the Court that the laws contravened by the accused include: (failure to register, keep record of earnings, pay annual assessment, furnish commissioner with particulars) in relation to the Compensation for Occupational Injuries and Diseases Act 130, of 1993 and owes – R659 879,11
Contravention of the Occupational Health and Safety Act no. 85 of 1993 (failing to provide and maintaining a safe workplace, failure to inform employees about hazards to their health and safety, and failure to report an accident to the inspector
Contravention of the Unemployment Insurance Act (by failing to provide the information of employees to the commissioner of the Fund, employer failed to inform the commissioner of any changes required;
Contravention of the Unemployment Insurance Contribution (by failing to provide particulars to the commissioner, failed to pay contributions to the commissioner in the total amount of – R261 231,42 as required;
They also contravened the Basic Conditions of Employment Act (by failing to pay employees for Sunday work – amounting to R2 070 900,00;
Contravention of the National Minimum Wage Act 09 of 2018 (the employer failed to pay the prescribed minimum wage to an amount of – R4 664 041,20;
The Provincial Inspector told the Court that the contraventions carry either a fine or imprisonment, or both the fine and imprisonment imposed simultaneously. Msiza also testified that the fact that the Malawians were “illegal” in the country does not absolve the employer from his/her obligations to abide by the labour laws.
“It is also an obligation of an employer to check the status of an employee when hiring,” said Msiza, that the Department was also considering attaching the property (factory) owned by the Chinese to recover what was owed to the Department.
In another development, it emerged in Court that the Chinese nationals have since brought another bail application with the High Court. In their application the Chinese national allegedly cite “ill health” in their application to be granted bail.
Warrant Officer Ms Lulama Kona from the Hawks testified during the bail hearing that he was not aware of any “medical illness” of the accused.
The matter has been postponed to 12 February 2020 for further bail application. The accused have been remanded in custody.
Issued by the GCIS on behalf of the Department of Employment and Labour
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