LISTEN | SIU secures R2.7m repayment plan from firm over misused grant

Funds meant for 100 learners were spent in two months before programme began

SIU secured an acknowledgement of debt from Rubicon Communications and its CEO Hangwani Nengovhela, to recover R2.7m misappropriated from the National Skills Fund. (Oupa Bopape)

Owner of fashion brand, Rubicon, Hangwani Nengovhela, has agreed to pay back R2.7m that her firm was awarded in 2018 by the National Skills Fund [NSF].

The Special Investigating Unit [SIU] secured an acknowledgement of debt from Nengovhela and her company Rubicon Communications, in order to recover R2,699,000 misappropriated from the NSF.

Nengovhela is a well-known personality in the clothing space for her fashion house Rubicon. She has been featured in various magazines and on Top Billing, an SABC TV show.

Spokesperson Selby Makgotho said the repayment will be made in monthly instalments of R74,772.29, starting in May, with interest accruing until the full amount is settled.

“This recovery reinforces the SIU’s commitment to protecting public funds and ensuring accountability,” Makgotho said.

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He said the company was initially awarded the money by the NSF in November 2018 to deliver a leadership and skills development programme for 100 learners.

“The initiative, meant to start in 2019 and run for 12 months, aimed to equip learners with a National Certificate in Clothing, Textile, Footwear and Leather Manufacturing. However, the SIU’s forensic analysis revealed that the funds were spent within two months of receipt, between November and December 2018, long before the training could begin.

“The money was diverted to cover Rubicon’s operational expenses, logistics, machinery purchases, rentals, loan repayments, school fees and personal transfers,” said Makgotho.

“By the end of December 2018, the entire allocation had been depleted, leaving nothing for the learners the project was meant to empower,” he said.

“The misuse of funds meant that the leadership programme never took place, and 100 learners were denied an opportunity to gain critical skills that could have improved their livelihoods.”

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Acting under Proclamation No. 253 of 2025, the SIU engaged Rubicon Communications to recover the misused funds.

After negotiations, the company signed an Acknowledgement of Debt in February 2026, ensuring the NSF will recover the full amount plus interest and costs.

“The agreement and payment that follow do not exempt the parties involved from being referred to the prosecuting authority for potential criminal prosecution. This recovery underscores the SIU’s commitment to protecting public funds and ensuring accountability,” Makgotho said.

“Money meant to uplift South Africans through skills development will now be returned to the NSF. Corruption and maladministration will not go unchallenged.”

Fact Box

R1.39m was spent on operations and logistics,

R200,000 went to machinery,

R90,000 was paid for rentals, and significant transfers made to individuals linked to the company.

Sowetan


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