Public Service and Commercial Union: Government sabotaging job creation?

The staggering unemployment stats in South Africa continue to rise. File Picture: Independent Newspapers

The staggering unemployment stats in South Africa continue to rise. File Picture: Independent Newspapers

Published Feb 2, 2024


With the ever-rising inflation, food and fuel costs in South Africa, a need for jobs remains paramount, however, a report by Sagarmatha reveals 5,000 jobs are being sabotaged by government.

Sagarmatha, a Sekunjalo Group company has secured a $400 million investment to create about 5,000 jobs in technology for South African youth.

However, the initiative is allegedly being sabotaged with continuous delay tactics from government and other state organs which include the Johannesburg Stock Exchange (JSE).

The Public Service and Commercial Union (PSCU) said Sagarmatha would have been the first African multi-sided platform (MSP) to have listed abroad, but, instead of supporting homegrown initiatives, South Africa is opening its doors to other MSPs such as Amazon.

It is no secret Sagarmatha has initiated a R50 billion lawsuit against key governmental and regulatory bodies including the JSE and the presidency.

PSCU said the bill lawsuit would sadly be footed by less than seven million taxpayers who are hanging by a thread to remain employed.

PSCU Secretary General, Tahir Maepa wrote to the Department of Employment and Labour (DEL) and the Presidency last year (2023) about its policies and roles in ensuring sustainable employment in South Africa.

The letters also requested proof of the use of funds allocated for jobs had been spent in the current administration.

It said the Public Employment Services (PES), Labour Activation Programme (LAP) and Temporary Employer/Employee Scheme (TERS) were programmes which were supposed to be moved to Productivity SA since the reconfiguration of DEL to ensure efficiency and acceleration of job creation projects but this has not materialised

“The response from DEL lamented on various policies and plans but not enough on tangible and sustainable results that a country can boast of,” Maepa said.

He said the resignation of the Director General (DG) of DEL, Thobile Lamati has also raised eyebrows as this comes after months of allegations that money that was approved for a project that was to ascertain employment in the country could not be allocated due to political interference.

Maepa said Lamati backed the R5 billion project to be funded by the Unemployment Insurance Fund (UIF) as part of a job creation scheme.

He said while this was in Lamati’s power as DG, the power above seemed to lack the same vision that would alleviate unemployment and boost the economy.

“As labour, the creation and preservation of jobs in the country as well as a prosperous economy is of great importance to us. It is no secret that a thriving workforce is fundamental in any economy, but it seems this current administration under Cyril Ramaphosa is comfortable with its people relying on social grants for bread and butter.

“This also puts pressure on the already struggling small working class for their taxes to maintain the poor,” Maepa said.

He further questioned: “Why is this government not embracing job creation efforts put forward by their people?”