Productivity SA suspends chief financial officer

PRODUCTIVITY SA, the government entity tasked with employment growth and productivity improvement, has suspended its chief financial officer (CFO), Bheki Dlamini.

The suspension follows alleged irregularities pertaining to the management of funds provided by the Unemployment Insurance Fund (UIF) for employment growth.

A day after Dlamini s suspension, executive manager: turnaround solutions Mudzunga Mashamba resigned from the organisation with immediate effect.

Also on the same day, former senior employee Moshe Ramokolo, who was fired for fraud relating to the UIF funds, was fighting to get his job back when he appeared before the CCMA.

According to a statement from Productivity SA, the UIF has provided it with funding of more than R188-million since 2010.

In terms of the agreement between the UIF and Productivity SA, the monies are availed on the proviso that the funds will be utilised 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,” said the statement.

However, it has emerged that a figure of about R36-million [pending investigation] has since 2011 been allegedly utilised for activities that are not related to job saving as per 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.”

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