Productivity SA has suspended CFO Bheki Dlamini following alleged irregularities pertaining to the management of funds provided by the Unemployment Insurance Fund (UIF) for employment growth.
Since 2010, the UIF has provided the government entity, tasked with employment growth and productivity improvement, with R188.1-million in funding, aimed at supporting companies in economic distress.
However, almost R36-million has, since 2011, allegedly been used for activities not related to saving jobs, which resulted in the failure to meet targets. To date, only 372 companies have been assisted, as opposed to the envisaged 550.
“The board has commissioned an investigation to ascertain the extent of the alleged irregularities and to ensure accountability,” Productivity SA chairperson Mthunzi Mdwaba said in a statement on Thursday.
CEO Mothunye Mothiba added that the entity was committed to serving the nation in mitigating issues of unemployment and saving jobs while investigations were under way.
The suspension of the CFO follows the earlier dismissal of a senior employee who, following an investigation initiated by the board, was found guilty of fraud.