Anneline Chetty appointed acting chair of Productivity SA after Mdwaba's ousting

Employment and labour minister Thulas Nxesi has appointed Dr Anneline Chetty as acting chairperson of the board of state entity Productivity South Africa.

Last month, the Sunday Times said it had learnt from two independent sources that Nxesi had removed chairperson Mthunzi Mdwaba from the board over a conflict of interest.

Mdwaba is chairperson of Thuja Holdings, the company which concluded a controversial R5bn job creation scheme with the Unemployment Insurance Fund (UIF) without any due diligence.

Nxesi said he had met the board of Productivity SA on Thursday after the receipt of a forensic report regarding the R5bn agreement.

He said the forensic report covered a variety of irregularities, legal and factual issues, and of immediate concern was whether there was a conflict of interest involving the chairperson of the private entity Thuja Holdings and his position as chairperson of Productivity SA. 

Nxesi said after a fair process allowing Mdwaba to answer to the report, he had briefed the board on his decision to remove him with effect from September 22.

Chetty has been a deputy chairperson of the board and has vast professional experience on its work.

The employment and labour department said all members of the board had voiced their support of Chetty.

Productivity South Africa is tasked with saving and creating jobs and relies on funding from the UIF, among other organisations. It provides financial support for distressed companies to stabilise them and save and create jobs. 

After the Sunday Times exposed the R5bn Thuja scheme late last year, Mdwaba’s deal with the private company — of which his musician son is also a director and which appears to be in direct competition with Productivity South Africa — sparked an outcry.

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