BusinessLive reports that the Unemployment Insurance Fund (UIF) has stepped in to rescue Productivity SA once again, after the labour department agency failed to pay service providers for its turnaround solutions programme for more than seven months.  

Productivity SA was established in 2014 with a mandate to promote employment growth and productivity, thereby contributing to SA’s socio-economic development and competitiveness.  The UIF is the biggest financial contributor to Productivity SA.  The UIF, which had withheld its conditional grant to the agency after funds were not used for the turnaround solutions programme as allocated, paid R6.4m to Productivity SA in June to settle its debts to the service providers.  As a result of misallocating funds, the agency still owes the UIF R36m.  Productivity SA is likely to be mentioned among the government’s job retention tools during this week’s jobs summit that will look at ways to stimulate the economy and create jobs.  But its performance has been dismal, with its recently released annual report indicating its funding shortfall was affecting key operations.

• Read this report by Theto Mahlakoana in full at BusinessLive

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