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Fin24 reports that Thobile Lamati, director-general of the Department of Labour and Employment (DEL), has resigned.
His resignation follows reports of him having backed a controversial project to channel billions from the Unemployment Insurance Fund (UIF) into a private investment company. Lamati conveyed the news to his top management in a WhatsApp message on Wednesday. His fate has been in the balance for the past month, as President Cyril Ramaphosa considered a report on the matter submitted by DEL Minister Thulas Nxesi. Only Ramaphosa has the power to hire and fire directors-general. While the contents of Nxesi's report are unknown, it is an open secret in the department that he wants Lamati out. The scheme in question involved an R5 billion transaction – part loan and part grant funding - with Thuja Capital, owned by businessman Mthunzi Mdwaba. Under the scheme, Mdwaba would buy stakes in various companies and then use his power as a shareholder to promote job creation. Thuja Capital was hastily registered last December, shortly before Lamati and UIF commissioner Teboho Maruping pushed for the deal to happen. But the transaction was scuppered by a report in the Sunday Times that exposed the plan. Maruping's future has still to be determined.
- Read the full original of the report in the above regard by Carol Paton at Fin24
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