UIF commissioner Teboho Maruping challenges suspension amid disciplinary processes over R5bn Thuja deal

Employment and Labour Minister Nomakhosazana Meth has explained why Teboho Maruping, the Unemployment Insurance Fund (UIF) commissioner, has been suspended on two separate occasions.

Maruping was first suspended in September 2024 due to his alleged involvement in the unlawful R5 billion agreement with Thuja Holdings, a company owned by businessman Mthunzi Mdwaba.

The Gauteng High Court in Pretoria ruled against the Thuja jobs scheme tender months earlier, declaring it invalid.

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The court found that the agreement between the Department of Employment and Labour and Thuja Holdings had not complied with the Public Finance Management Act (PFMA).

Mdwaba later sought to appeal the ruling, but his application was dismissed by the Supreme Court of Appeal (SCA) in August.

Maruping was subsequently placed on precautionary suspension.

UIF commissioner Teboho Maruping’s first suspension

Maruping had previously been suspended in 2020 following an Auditor-General report highlighting irregularities in the payment of the Covid-19 Temporary Employer-Employee Relief Scheme (Ters).

Although an investigation by the Special Investigating Unit (SIU) found no evidence that the UIF commissioner personally benefited from the Covid-19 Ters funds through fraudulent or corrupt means, he was found guilty of irregularly appointing media houses to market the relief scheme.

He returned to work in February 2022.

Parliamentary Inquiry into UIF commissioner’s suspensions

Democratic Alliance (DA) MP Michael Bagraim raised questions regarding the charges against Maruping and the reasons behind the lack of further action following his first suspension.

Bagraim also sought clarity on the current status of Maruping’s second suspension, questioning whether he would remain suspended indefinitely and, if not, when the matter would be resolved.

In a parliamentary response, Meth explained that the first suspension was linked to misconduct, as Maruping had approved five service providers in violation of the PFMA.

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The irregular appointments led to R6.1 million (R6,144,351.68) in unauthorised expenditure.

Meth confirmed that action was taken against Maruping.

“Consequence management was meted out to him for the irregular appointment of media houses and the commissioner received a sanction a final written warning of one month’s suspension without pay,” she said.

Second suspension over Thuja Holdings agreement

Regarding the second suspension, Meth stated that a forensic investigation by Gawula Inc implicated Maruping in the Thuja-UIF agreement, leading to charges of gross misconduct and dishonesty or gross negligence.

According to the charge sheet, Maruping allegedly failed to ensure that the agreement underwent proper due diligence and risk assessment before committing UIF funds to Thuja.

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He was also accused of not informing the minister and the UIF board about the agreement.

Further allegations include that Maruping threatened UIF officials with disciplinary action when they raised concerns about the lawfulness of the agreement.

This was deemed an abuse of power and a failure to act in the UIF’s best interest.

UIF commissioner Teboho Maruping fights suspension

Meth indicated that the UIF had arranged for Maruping’s disciplinary hearing to take place in mid-February and the first week of March this year.

Despite this, Maruping has challenged his suspension at the General Public Service Sectoral Bargaining Council (GPSSBC), and the matter remains unresolved.

“The commissioner will remain on precautionary suspension until finalisation of his disciplinary hearing,” the minister said.

She, however, admitted that a firm conclusion date cannot be provided.

“Unfortunately, I cannot advise of a specific date for the finalisation of the matter due to the disciplinary hearing getting adjourned for various reasons and the availability of the parties and the chairperson and so on.”

The minister added that the department was committed to resolving the matter “as soon as possible”.

“The suspension is necessary to ensure that there is no possible intimidation or interference with witnesses or other undesirable acts, more so given that fact that some of the people who are witnesses in this case are employees of the Unemployment Insurance Fund,” Meth concluded.

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