Johannesburg - The government entity tasked with employment growth and productivity improvement, Productivity SA, has suspended its CFO.
The suspension follows alleged irregularities pertaining to the management of funds provided by the Unemployment Insurance Fund (UIF) for employment growth.
Since 2010, the UIF has provided Productivity SA with funding to the tune of R188.1 million.
In terms of the agreement between the UIF and Productivity SA, the monies are availed on the proviso that the funds will be used to support companies in economic distress (financial and operational).
The support offered to companies by Productivity SA is multi-pronged and includes implementation of productivity improvement programmes within the companies. The ultimate aim of the support is to turn around the companies, thereby ensuring sustainability within South African enterprises.
However, it has emerged that a figure of about R36 million (pending investigation) has since 2011 allegedly been used for activities that are not related to job-saving in terms of the contract between UIF and Productivity SA. This has allegedly resulted in the failure to meet targets and, to date, 372 companies were assisted as opposed to the target of 550.
In discovering the alleged irregularities, the Productivity SA CEO, Mothunye Mothiba, with the full support of the board, suspended Productivity SA‘s CFO, pending further investigation. The suspension of the CFO follows the earlier dismissal of a senior Productivity SA employee who, following an investigation initiated by the board, was found guilty of fraud.
Chairman Mthunzi Mdwaba says “the board has commissioned an investigation to ascertain the extent of the alleged irregularities and to ensure accountability”.
CEO Mothunye Mothiba says “the entity is committed to serving the nation in mitigating issues of unemployment and saving jobs whilst investigations are under way”.
Productivity SA is an entity of the Labour Department and it is established in terms of Section 31 of the Employment Services Act. Its mandate is to promote employment growth and productivity.
IOL