Employment and Labour Minister Thulas Nxesi is facing increasing pressure to address concerns about the controversial R5-billion Unemployment Insurance Fund (UIF) deal with Thuja Capital deal.
The request for transparency comes after Thobile Lamati, who was the director-general in the department, resigned amid allegations surrounding the UIF deal.
Machael Cardo, spokesperson for the DA, has accused the department of being chaotic.
He also criticised Nxesi for withholding information about the controversial deal, arguing that it is somewhat dishonest and disrespectful to the parliamentary portfolio committee.
“Without completing due diligence, and against the advice of their own adjudication structures, the department and UIF had planned to invest billions of rands of workers’ hard-earned money into Thuja, ostensibly to create thousands of jobs and market linkages, and to broaden supply chains.
“This was clearly a mad-hatter’s scheme from the very start, designed to make a few departmental insiders very wealthy,” Cardo said.
Forensic investigation
In its call for transparency, the DA is demanding details of the forensic investigation into the transaction, including the inquiry’s recommendations, the name of the service provider that conducted the probe, and the related costs.
It also wants to be let in on the disciplinary measures that have been taken or will be taken against all implicated officials.
Cardo stressed the importance of holding people accountable in this situation, saying the UIF is having a hard time conducting its main job.
He underscored that many UIF beneficiaries are waiting for payments, stating that the news of a “risky” R5-billion investment is making the situation even more concerning.
“The UIF is barely functioning and thousands of UIF beneficiaries are still waiting to be paid their money,” he asserted.
“The notion that the UIF was prepared to squander R5-billion on an unproven scheme is unconscionable, and the minister owes the nation an explanation about the fallout from the transaction and why the DG [director-general] has resigned.”
