Labour Minister Thulas Nxesi has rejected allegations that he and two other Cabinet ministers demanded bribes for a R5 billion Unemployment Insurance Fund (UIF) contract.
The Unemployment Insurance Fund (UIF) said it will co-operate with law-enforcement agencies investigating allegations of corruption linked to a R3 billion Labour Activation Programme (LAP).
A Sunday newspaper reported that Employment and Labour Minister Thulas Nxesi has been identified as a person of interest in the matter following an investigation into fresh allegations of corruption involving about R3bn.
The matter is being investigated by the Special Investigating Unit (SIU).
The claim is that the scheme irregularly distributed millions from the labour activation programme fund, meant to boost job creation, to more than 30 companies without following due process.
The UIF said it has not yet received official correspondence from the SIU but will co-operate fully.
“As an organisation that respects the rule of law, and that observes good governance principles and practices, the fund will provide necessary assistance to the law-enforcement agencies in the course of their investigation.”
“We will await the outcome of the said investigation before commenting further on this matter. To this end we request space and time to aid the law-enforcement agencies in their work.”
The latest allegation of UIF corruption comes days after Nxesi batted away allegations that he and two other Cabinet ministers demanded bribes for a R5 billion Unemployment Insurance Fund (UIF) bid, saying the claims were meant to divert attention from the irregularities surrounding attempts to access public funds.
Nxesi was responding to claims by Thuja Capital CEO Mthunzi Mdwaba, who alleged that three ministers through government officials acting as intermediaries, demanded 10% of the R5bn to help him seal the deal.
Minister of Higher Education, Science and Technology Blade Nzimande and Minister of Finance Enoch Godongwana are the other ministers who had been implicated.
All the ministers have dismissed the allegations made by Mdwaba.
SIU spokesperson Kaizer Kganyago confirmed that the unit is investigating allegations of corruption regarding the LAP, Thuja Capital and other probes linked to Covid-19 UIF payouts.
Nxesi’s spokesperson Sabelo Mali said he would not be commenting on issues related to procurement at LAP.
Cosatu spokesperson Matthew Parks said the union was concerned about the allegations of corruption at the UIF.
“This is deeply worrying. We do not see systems in place to address corruption. This is a get-rich-quick scheme run by the UIF, private sector and government.”
Parks said there had been some intervention by law enforcement but “huge amounts of money meant for workers was now lining people’s pockets”.
“Law enforcement must get more involved and the SA Revenue Service (Sars) must assist to make the UIF’s systems transparent to prevent future corruption.”
The union has already urged President Cyril Ramaphosa, to release and act on the forensic audit into the UIF and the “irregular attempts to pickpocket R5 billion of workers’ monies” from the fund.
“It is not enough for alleged corrupt or illegal activities to be stopped. Those who are accused need to face the full legal consequences for their actions.
“We cannot change an endemic culture of corruption and criminality if we continue to treat those found wanting with kid gloves.”
The fund needs to be overhauled. “The days of allowing a corrupt elite to feast at the expense of workers need to end.”
The Mercury