Nxesi denies allegations of R500 million bribe
Minister of the Labour Department Thulasi Nxesi has rebuked recent claims that he solicited a bribe for a R5 billion Unemployment Insurance Fund (UIF) contract.
Nxesi was responding to allegations made by Thuja Capital CEO Mthunzi Mdwaba, who accused Nxesi and two other ministers Blade Nzimande and Enoch Godongwana that they demanded 10% of the R5bn to help him seal the deal.
This is after the UIF last year awarded a R5bn job creation deal to Thuja Capital, made up of part loan and part grant funding.
Last month, Nxesi told members of parliament that the funds were meant to create 750000 jobs through investment from the UIF as seed capital, was suspended towards the end of last year, pending a probe.
The project involved the department, the UIF, Thuja and state-owned Productivity SA which had been chaired by Mdwaba at the time.
Nxesi on Wednesday said Mdwaba’s latest allegation that he attempted to take a bribe “from the very transaction that I stopped is false and without foundation”.
He said “not one iota of evidence is provided, in what is clearly a self-seeking attempt to divert attention from the issues around the R5bn Thuja scheme”.
“The attacks on myself by Mdwaba began two years ago when we were obliged to withdraw our support for his candidacy for a position in the ILO (International Labour Organisation).
“Mdwaba blamed me for this, even though it was a government decision, emanating from the emergence of information on his dubious past: he was previously declared a delinquent director and unfit to hold certain positions by the courts,” Nxesi said.
“Our paths crossed again late last year, when the media exposed a plan to pay over R5 billion of UIF funds to Mdwaba’s private company, Thuja.”
Nxesi said he acted immediately to stop any payment, despite Mdwaba’s threats of legal action, “thus safeguarding public funds”.
“I then called for a forensic investigation, which pointed to irregularities, including a conflict of interest: Mdwaba was both chair of Productivity SA (an entity of the Department of Employment and Labour) and CEO of Thuja.
“We therefore instructed lawyers to prepare an application to set aside the Thuja agreement, and Mdwaba was removed as chairperson of Productivity SA.” he said.
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