Kaya 959 Reporter
The Unemployment Insurance Fund (UIF) has reportedly about R1.8-billion due to questionable investments.
The UIF which gives short-term relief to workers when they become unemployed or are unable to work because of maternity, adoption and parental leave, or illness has been made aware of a questionable investment made by the Public Investment Corporation.
The investment was made to a consumer goods business Bounty Brands and politically connected dealmaker Lawrence Mulaudzi.
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Makhosonke Buthelezi, who is the spokesperson for the Unemployment Insurance Fund (UIF) recently joined Gugulethu Mfiphi to unpack how the investment was made.
“When the investment was made, there wasn’t any red flags that were raised.
“The Public Investment Corporation (PIC) had indicated that they had done all the due diligent as they normally do with their investments.”
“It was reported at the previous annual report, that’s when we were made aware that things were not going well with this investment because their auditors could not vouch for their books. “
“That’s when we became aware that there might be a problem with this particular investment.”says Buthelezi.
According to the UIF’s latest annual report.the R1.37-billion UIF investment, along with an earlier one of R406-million in one of Mulaudzi’s entities, Kefolile Consumer Brands, have both effectively been wiped out.
Bounty Brands is involved in a range of business and distributes a variety of consumer goods products, such as Vans and Diesel clothing to Cheerios cereal and Tuffy kitchen and home-care items.
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