By Lehlohonolo Lehana.
Minister of Employment and Labour, Nomakhosazana Meth has confirmed that the Unemployment Insurance Fund commissioner Tebogo Maruping has been placed on precautionary suspension.
Meth said the decision was taken over charges relating to an irregular R5 billion jobs scheme.
The suspension comes after a forensic investigation by an independent law firm found he failed to ensure effective, efficient and transparent systems of financial and risk management were adhered to at the UIF.
Meth added that she has mandated acting director-general Viwe Mlenzana “to deal with all systematic and capacity challenges within the department and its entities.”
“I am very much mindful of the UIF’s challenges; specifically, the system challenges and the negative impact on workers, the unemployed, beneficiaries of deceased contributors and employers alike. I would like to assure the public that work is currently under way to respond adequately to such challenges,” she said.
Maruping recommended that Thuja Capital, a company owned by then Productivity South Africa chair Mthunzi Mdwaba, be funded to the tune of R5bn to run an untested job creation programme.
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.
The high court ruled that the multi-billion-rand contract, which promised to create over 25,000 jobs, was “invalid” and set aside.
In September 2020 Maruping, CFO Fezeka Puzi and COO Judith Kumbi were placed on suspension with full pay — pending a forensic investigation by the Special Investigating Unit.
This followed a probe into the Temporary Employer/Employee Relief Scheme (Ters) by the late auditor-general Kimi Makwetu.
One of the key interventions introduced by government was the UIF TERS, which paid funds to employers who could not operate their businesses during the hard lockdown so that they could continue to pay wages to employees.
However, the office of the Auditor-General found a number of irregularities in the payments, including undue payments, fraudulent claims – including from employers.
The Auditor-General’s findings necessitated a Special Investigating Unit (SIU) probe and Maruping was one of three officials placed on precautionary suspension.
Maruping was also found to have ignored internal legal advice, overlooked or circumvented internal processes, misrepresented the Thuja Capital proposal and failed to act in the best interests of the UIF when he recommended approval of the project.