This is part two of a series of columns on the latest developments at the Unemployment Insurance Fund (UIF) which has been embroiled in a scandal involving the now-axed former chairperson of Productivity South Africa, Mthunzi Mdwaba.
Former chairperson of Productivity South Africa, Mthunzi Mdwaba is also the chairperson of Thuja Capital Fund which entered into a controversial R5 billion job-creation scheme with the UIF, a scheme which was seemingly in direct competition with the work of Productivity South Africa.
Mdwaba has denied any wrongdoing, but his removal from the board is a welcome development. It is important to send a clear message that those who abuse their positions of power for personal gain will be held accountable.
The president regularly advises South Africa that when anything has gone wrong, he is shocked and will set up a board of inquiry. All too often, these boards of inquiry sit for years and come up with insipid recommendations. These recommendations very seldom find any wrongdoing.
True to fashion, this judicial review did actually sit and only last week, nine months later, produced a 225-page forensic report. As expected, the report did find that no proper procedure had been followed and the protocols for such investment had been ignored. It does appear that this cosy deal of R5bn and possibly more could have been the perfect heist.
Although we don’t know how much the forensic report has cost the government, one can imagine that if it has been sitting for almost nine months, that will be a pretty penny in itself. It now strongly looks like the UIF commissioner and the director-general of the Department of Employment and Labour have dirty hands.
Although we haven’t had a chance to see what their response is, it becomes pretty obvious that the individuals concerned might either be extremely gullible and incompetent or indeed have dirty hands.
The explanation when the deal was exposed was that they were looking to try to train and employ more people. This unlikely story convinced nobody at all. Even children who are used to fairy tales could never have “bought this one”.
At least the department has at last taken some action. I believe that no action would have been taken if no pressure had been brought to bear upon the minister.
It now looks like the minister has at last asked for a proper explanation from the individuals concerned and why he should not suspend them. I can’t understand why no one has even looked at the mastermind, Mr Mdwaba.
It has taken over nine months to even ask for a proper explanation from the individuals who might have very dirty hands. Even now, the commissioner seems to believe that there has been no communication at all from the minister.
We obviously wait with bated breath to hear what the consequences will be and how much money has been lost from the initial R5bn and exactly how much the government has spent investigating this obvious ruse.
Unfortunately, this story is being repeated many times in many departments in a country that has already declared that it is almost bankrupt.
* Michael Bagraim.
** The views expressed here are not necessarily those of Independent Media.
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