UIF Commissioner suspended

The Minister of Employment and Labour, Nomakhosazana Meth, has placed the Unemployment Insurance Fund (UIF) Commissioner, Teboho Maruping, on precautionary suspension.

In a statement published on 13 September 2024, Meth said that Maruping was placed on precautionary suspension “due to the nature of charges he is facing.”

These emanate “inter alia” from the alleged role he played in the conclusion of the agreement between Thuja Holdings.

The Pretoria High Court invalidated the agreement between the UIF and Mthunzi Mdwaba’s company on May 28, 2024. 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, Times Live’s investigation discovered that the Department of Employment and Labour and UIF planned to invest in the Thuja Capital Fund despite the company’s lack of premises, website, or track record.

The court ruled that the multi-billion-rand contract, which promised to create over 25,000 jobs, was invalid and set aside.

The Supreme Court of Appeal rejected Mdwaba’s appeal on August 15.

“This agreement caused a public stir, especially in the labour sector, resulting in disputes that caused inefficiencies in the UIF and its systems,” said Meth.

The minister added that the Commissioner’s disciplinary process “will be dealt with expeditiously, as we need to refocus the UIF to its mandate of providing social benefits to workers, as a matter of urgency.”

This is not the first time Maruping has been suspended.

Maruping was suspended in 2020 after a report by the Auditor-General (AG) found irregularities with the payment of COVID-19 Temporary Employer-Employee Relief Scheme (COVID-19 TERS), but after over a year, was cleared of charges.

“I have further mandated the Acting DG, Mr. Mlenzana, to deal with all systematic and capacity challenges within the Department and its entities so that we can respond adequately to the unemployment challenges in the country,” said Meth.

Meth emphasised that she is “very much mindful” of the UIF’s challenges; specifically, which impact the workers directly, and “would like to assure the public that work is currently underway to respond adequately to such challenges.”

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