By Lehlohonolo Lehana.
The Gauteng High Court in Pretoria has set aside controversial businessman Mthunzi Mdwaba’s R5-billion contract with the Unemployment Insurance Fund (UIF), declaring it unlawful.
Acting Judge Japie Maritzaritz also ordered Mdwaba to stop defamatory claims against employment and labour minister Thulas Nxesi.
Mdwaba alleged Nxesi, finance minister Enoch Godongwana, higher education minister Blade Nzimande, and ANC secretary-general Fikile Mbalula of trying to solicit a 10% bribe for a “now failed UIF R5 billion deal”.
All four politicians denied the allegations levelled against them by Mdwaba.
Nxesi said he heard of this agreement through the media in January. He then established that approvals by the UIF governance processes were not obtained. He then gave instructions for the suspension of the implementation of the programme and for any contemplated payments to Thuja to be stopped.
The court granted this, and found “the written contract invalid and set aside”.
“The first respondent (Mdwaba) is interdicted from publicly uttering any statement to the effect that the applicant had been corrupt or extortionate when prohibiting the implementation of the contract,” it added.
Mdwaba was ordered to pay costs.
The contract would have given the UIF a 19% stake in Thuja’s investments for R5 billion from its coffers.
This would have included a R1 billion investment into an unnamed bank and insurance company, with the remaining R4 billion being split between R2.5 billion for unemployed individuals in South Africa to start businesses and R1.5 billion for providing loans to businesses.
However, an investigation discovered that the Department of Employment and Labour and UIF planned to invest in the Thuja Capital Fund despite the company having no premises, website, or track record.
Mdwaba was also “interdicted from publicly uttering any statement to the effect that the [Labour and Employment Minister Thulas Nxesi] had been corrupt or extortionate when prohibiting the implementation of the contract,” said the court.
This was Mdwaba’s second defamation case loss. In January, Godongwana won his defamation case against Mdwaba for the public comments accusing him of soliciting a R500 million bribe.
Meanwhile Nxesi said government spheres must do away with a “silos mentality” as it prevents service delivery programmes from reaching ordinary citizens.
“We should do away with the silos. The problem with government is silo mentality and territorial, “he added.
The department and the Minister have since embarked on the initiative to provide a platform for employers to share information, engage with stakeholders and develop partnerships.
The jobs fair initiative is championed by the department’s Public Employment Services (PES) branch and seeks to create opportunities for work seekers and provide a platform to interact with prospective employers.