Nxesi files application to set aside controversial R5 billion UIF deal
Mthunzi Mdwaba alleged that high-ranking ministers tried to solicit a R500 million bribe from him for a R5 billion tender with the UIF.
Employment and Labour Minister Thulas Nxesi is set to file an urgent court application to set aside the controversial R5 billion Unemployment Insurance Fund (UIF) jobs deal with Thuja Holdings.
Nxesi revealed this during a media briefing on Thursday, 23 November, following allegations of his involvement in the UIF jobs deal saga with Mthunzi Mdwaba’s Thuja Holdings.
R5 BILLION UIF DEAL TO BE SET ASIDE?
As previously reported by The South African, in an interview with TV channel Newzroom Afrika, CEO of Thuja Holdings, and former Chair of Productivity SA Mthunzi Mdwaba Mdwaba said Ministers of Finance (Enoch Godongwana), Employment and Labour (Thulas Nxesi) as well as Higher Education and Training (Blade Nzimande) approached him through intermediaries demanding R500 million for an R5 billion tender deal he tried to secure with the Unemployment Insurance Fund (UIF).
Mdwaba said the deal which was concluded in December 2022, was a project that would help fight unemployment, which is alarmingly high in South Africa.
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On Thursday, Nxesi said he signed his affidavit supporting various orders, chief amongst the setting aside of the agreement.
Nxesi said he brought the application urgently and challenged Mdwaba to present evidence supporting his allegations that he (Nxesi) demanded any payment of a corrupt fee about 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 decided 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.
NXESI DENIES ALLEGATIONS
The Minister further denied allegations by Mdwaba that he and other Ministers tried to solicit a R500-million bribe in 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,” he added.
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