Court sets aside R5bn UIF tender amid Mdwaba bribery claims

Court sets aside R5bn UIF tender amid Mdwaba bribery claims

The High Court in Pretoria has set aside a R5 billion Unemployment Insurance Fund tender awarded to businessman Mthunzi Mdwaba.

Thulas Nxesi
Pic Courtesy: GCIS

The department approached the court following Mdwaba’s allegations that ministers Enoch Godongwana, Blade Nzimande, Thulas Nxesi, and ANC Secretary General Fikile Mbalula demanded a 10% cut of the UIF tender.


Mdwaba said the ministers, through intermediaries, demanded bribes totalling R500 million.  


The court also ordered Mdwaba to stop defaming Nxesi.


"Mdwaba was ordered to pay the minister’s costs for the application, including the cost for two legal counsels employed,” said Nxesi’s advisor, Lumko Mtimde 


“Minister Nxesi has always known that the contract was unlawful in terms of the Public Finance Management Act. 


"Having regard to today’s judgment, the minister is in the process of filing a defamation application against Mr Mthunzi Mdwaba for propagating false, defamatory and baseless allegations of corruption." 


The UIF deal was supposed to provide seed capital to create employment for 250,000 people.


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