Johnathan Paoli
The DA has written to the chairperson of the Portfolio Committee on Employment and Labour, Lindelwa Dunja, requesting that Minister Thulas Nxesi appear before the committee, following reports on the R5 billion investment in the Thuja Capital Fund by the UIF intended for a job creation scheme.
DA Shadow Minister of Employment and Labour Michael Cardo said that despite details of the transaction allegedly rushed through by the Department of Employment and Labour Director-General Thobile Lamati and UIF Commissioner Teboho Maruping being leaked to the press, Minister Nxesi has failed to fully disclose details of the investigation.
Nxesi previously ordered a judicial review of the controversial award, with a view to setting aside the award, which was decided upon without due diligence.
The fund was intended to invest in established companies and influence them to train and employ more people. However, it was discovered that Thuja Capital Fund had no premises, no website and no track record.
The deal was expected to leave the UIF with a 19% stake in Thuja’s investments, including R1 billion earmarked for investment in an unnamed bank and insurance firm, with the remaining R4 billion split into R2.5 billion for business creation of the unemployed, and R1.5 billion for the provision of loans.
Thuja Capital is owned by Mthunzi Mdwaba, former chairperson of Productivity SA, an entity under the Employment and Labour Department, with allegations arising last year that Mdwaba received preferential treatment despite the job creation concept not being properly evaluated and being rejected by the Public Investment Corporation.
The DA shadow minister has called on the minister to provide details of the forensic investigation into the transaction including the inquiry’s recommendations, the name of the service provider and costs; and reasons why Lemati and Maruping have not been suspended including a report on the intended disciplinary measures that will be taken against all implicated officials.
“There must be consequences for such a gross abuse of resources. The UIF is barely functioning: the Fund is an administrative quagmire and thousands of UIF beneficiaries are still waiting to be paid their money.
“The notion that the UIF was prepared to squander R5 billion on this unproven scheme is just unconscionable, and the Minister owes the nation an explanation,” Cardo said.
Nxesi has said that due to increasing pressure, the deal was suspended and a copy of the report has been shared with President Cyril Ramaphosa.
INSIDE POLITICS
