Cape Town – Employment and Labour Minister Thulas Nxesi is taking legal action to set aside a controversial R5-billion Unemployment Insurance Fund (UIF) jobs deal with Thuja Holdings.
On Thursday, the minister addressed the media in response to accusations linking him to the UIF jobs deal controversy involving Thuja Holdings, led by Mthunzi Mdwaba.
The deal, made in December 2022, faced allegations of corruption, with CEO Mthunzi Mdwaba accusing Nxesi and other officials of attempting to solicit a bribe.
Nxesi said he signed an affidavit challenging the accusations and seeks to have the agreement annulled for breaching the Public Finance Management Act.
“Today, I signed my affidavit in support of various orders, chief amongst being the setting aside of the agreement. I have brought this application on an urgent basis. In that affidavit I challenge Mdwaba to present his evidence in support of his allegations that I have demanded any payment of a corrupt fee in relation to the agreement.
“If he cannot produce that evidence, I have asked the court for an interdict to stop him from promoting his campaign of false and unsupported lies.
“In simple terms, I have taken the decision to have the agreement concluded by the UIF with Mdwaba set aside, because it was concluded in breach of section 54(2) of the PFMA [Public Finance Management Act],” he said.
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Nxesi denied the corruption claims and questioned the legality of the Thuja Capital deal, emphasising that the court will decide.
The minister firmly rejected Mdwaba’s claims that he, along with other ministers, attempted to seek a bribe of R500 million in connection with the UIF jobs deal.
“Mr Mdwaba’s allegations of seeking bribes against myself, and others, are false and unsupported by any actual evidence. Let me be clear: I categorically deny these recent allegations of corruption…you must ask why Mdwaba waited nearly a year to come up with these allegations…Mdwaba will now have to prove these allegations in a court of law,” said Nxesi.
He also questioned the legality of the Thuja Capital deal stating that the real issue is “whether the deal is legal and valid, and [whether] due processes were followed in terms of the law.”
“This is an issue to be settled by the court. Mdwaba’s 10% bribe allegation will also be placed on record and subjected to the scrutiny of the court.”
The Minister noted that as the process of preparing court papers advances, additional accusations have surfaced, purportedly from an anonymous individual seeking immunity for past offenses.
The claim suggests collusion between the former Director-General of the department, Thobile Lamati, and the Minister in the illicit diversion of R3 billion from Labour Activation Programmes (LAP) 11 initiatives.
“On the last issue of R3 billion, I am happy that this will be investigated by law enforcement agencies to establish the processes followed and the roles of all parties concerned. To this end, I have instructed all staff members to fully cooperate with state agencies investigating the matter,” the minister.
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Compiled by Betha Madhomu
