Johnathan Paoli
Labour Minister Thulas Nxesi said he would be filing an application to set aside the controversial R5-billion jobs deal between the UIF and Thuja Capital.
Nxesi briefed the media in Pretoria on Thursday following allegations by the company’s CEO Mthunzi Mdwaba that Nxesi and other high-ranking government officials tried to solicit a bribe from him.
“Let me be clear, I categorically deny any allegations of corruption. You must ask why he waited nearly a year to come up with these allegations. He will now have to prove these allegations in a court of law,” Nxesi said.
Earlier this year, Mdwaba made allegations that his company was on the cusp of closing the jobs project with the UIF, but said that the deal had failed because he refused to agree to pay kickbacks worth R500 million to Nxesi, ANC secretary general Fikile Mbalula, Finance Minister Enoch Godongwana and Higher Education’s Blade Nzimande.
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 Mdwaba, and faced allegations arising last year that he received preferential treatment despite the job creation concept not being properly evaluated and being rejected by the Public Investment Corporation.
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