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TimesLIVE reports that Department of Employment and Labour (DEL) Minister Thulas Nxesi has ordered a judicial review of the Unemployment Insurance Fund’s (UIF’s) controversial award of a R5bn investment in a company, Thuja Capital, which at the time existed only on paper.
This is with a view to setting aside the award, intended for a job creation scheme and decided upon without due diligence. On Monday evening, Nxesi’s office confirmed he recently received a 225-page forensic report into the proposed R5bn transaction and it made damning findings, including that the UIF had not followed processes when striking the deal. Besides the court application to reverse the funding decision, Nxesi has also instructed his department to begin “consequence management” for staff found wanting in the awarding of the contract. “The minister has asked the responsible person/s to furnish him with written reasons why he should not suspend them,” Nxesi’s office indicated. Among those he has asked for reasons not to suspended them – the first step in a disciplinary process – are UIF commissioner Teboho Maruping and the DEL director-general Thobile Lamati. Nxesi said: “I have no doubt in my mind that consequence management must be implemented to prevent further waste of state resources. The employer/employee processes will ensue henceforth and consequently we are unable to divulge details until internal processes are concluded.” Among further measures Nxesi intends taking in line with the forensic investigation’s recommendations are more stringent due diligence to be conducted on proposals and a new declarations regime for officials who sit on adjudication and evaluation committees.
- Read the full original of the report in the above regard by Sabelo Skiti at TimesLIVE
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