R5bn UIF jobs project was legal, says ex-DG Lamati

Cancelled by Labour and Employment Minister Thulas Nxesi, the R5 billion Thuja project – aimed at providing sustainable jobs for at least 700, 000 unemployed South Africans – was within Section 5(d) of the UIF Act and had gone through a rigorous process before approval.

This is according to the former director-general, Thobile Lamati, one of South Africa’s longest-serving senior government officials.

His remarks follow allegations by Thuja Holdings CEO, Mthunzi Mdwaba, that Nxesi, Higher Education Minister Blade Nzimande, Finance Minister Enoch Godongwana and ANC secretary-general Fikile Mbalula, used intermediaries to seek a 10% bribe from him for the R5 billion deal to go through.

READ: Thuja Capital: Labour minister suspends R5bn fund after allegations of impropriety

The trio have denied Mdwaba’s claims.

‘Uneasy relations’

In an interview with The Citizen, Lamati spoke of the legal compliance process followed in the Thuja project and the uneasy relations with Nxesi,

The strained relations led to his resignation in October.

Reflecting on the Thuja project, Lamati maintained that the project was sustainable, followed legal processes and would have created permanent jobs, not limited merely opportunities.

Lamati had a series of meetings with Nxesi on the importance of the project in addressing the country’s unemployment rate.

“Initially, he [Nxesi] was impressed about the 700,000 permanent jobs. I told him that in 2019, the UIF spent a billion on 37,000 job opportunities, which were not sustainable.

“People we funded with a billion in 2019, are now sitting at home.

“The nature of public employment programmes is not sustainable, they are only there to keep young people going, especially when the economy is not growing.

Project spread over three years

According to the former director-general, the R5 billion project would be spread over three years.

“If you spend one billion in one year for 37,000 job opportunities, then you have to multiply that by five – coming to 180,000 jobs.

“I said to the minister he needed to compare that with R5 billion, creating 700,000 permanent jobs. He then concurred that the project was viable, asking me to write a report to discuss it with the president.

ALSO READ: Nxesi denies Mdwaba bribe allegations, threatens legal action

On 27 January, he gave Nxesi a 25-page report but never got feedback, Lamati said.

“I kept asking him whether he had read the report.

“He merely mumbled, and around July, he said there was going to be an investigation on the process and due diligence on the capacity of Thuja to deliver, which was fair.”

Action against Mdwaba

In a bid to clear their names:-

• Mbalula last month laid crimen injuria charges against Mdwaba at the Sandton police station – also sending a lawyer’s letter to him to retract the allegations, failing which he would take him to court.

• Nzimande also laid a criminal complaint against Mdwaba, at the Brooklyn police station, for his failure to report corruption to law enforcement authorities.

• Nxesi addressed a media briefing, refuting Mdwaba’s allegations.

NOW READ: Going out with a R5m bang: SANDF’s eye-watering send-off for general