SAnews.gov.za
The Commissioner of the Unemployment Insurance Fund has been placed on precautionary suspension amid an ongoing probe into an irregular agreement which would have seen R5bn in public funds being transferred to a private company.
The decision by the Minister of Employment and Labour, Nomakosazana Meth, was announced on Friday following a briefing from her director-general to suspend UIF commissioner, Teboho Maruping.
In May the Pretoria High Court declared an agreement between the UIF and Thuja Holdings, led by Mthunzi Mdwaba, invalid and set it aside, with Mdwaba also losing an appeal in August.
“This agreement caused a public stir especially in the labour sector, resulting in disputes that caused inefficiencies in the UIF and its systems,” the Ministry said.
Mdwaba had also reportedly claimed that three ministers, including former Employment and Labour Minister, Thulas Nxesi, had solicited a bribe of R500 million for “the mega deal to be implemented.
The Minister said Maruping’s disciplinary process will be dealt with expeditiously, saying they need to refocus the UIF on its mandate of providing social benefits to workers, as a matter of urgency.
“I have further mandated the Acting DG, Viwe Mlenzana to deal with all systematic (sic) and capacity challenges within the Department and its entities so that we can respond adequately to the unemployment challenges in the country.
“I am very much mindful of the UIF’s challenges; specifically, which impact the workers directly, and would like to assure the public that work is currently underway to respond adequately to such challenges,” Minister Meth said.
