South Africa's Supreme Court of Appeal Dismisses Thuja Holdings' Appeal in R5 Billion Jobs Scheme

In a landmark decision, the South African Supreme Court of Appeal has dismissed Thuja Holdings' attempt to overturn a prior judgment regarding a controversial R5 billion jobs scheme. Employment and Labour Minister Nomakhosazana Meth has expressed her approval of this outcome, affirming the preservation of Unemployment Insurance Fund (UIF) resources and the continuation of the government's commitment to creating job opportunities.

The Supreme Court of Appeal's decision, delivered on August 15, 2024, marks the apex of a prolonged legal tussle. Previously, on April 19, 2024, the Pretoria High Court had set aside the agreement between the Department of Employment and Labour and Thuja Holdings, deeming it in violation of the Public Finance Management Act.

This high-profile legal battle centered around Mthunzi Mdwaba, Thuja Holdings, and others who, following the adverse judgment at the Pretoria High Court, sought the avenue of an appeal. However, their efforts hit a substantial roadblock as the Supreme Court of Appeal, after reviewing the case, concluded that there was no substantial prospect of success for the appeal, nor any compelling reason for it to proceed.

Costs have been awarded against Mdwaba, including expenses for the utilisation of two legal counsel, reinforcing the severity and consequence of attempting to appeal the original judgment. Mdwaba's effort for a reversal of the Pretoria High Court's judgments and orders was brought to a final halt when the court dismissed, with costs, the matter on May 28, 2024.

Minister Meth has hailed the judgment as a significant win for the department and workers across South Africa, emphasizing the safeguarding of UIF money from irregular transactions. The court's decision underlines the heightened responsibility of government officials to protect funds designated for workers and to offer steadfast administration over such financial activities.

The Minister has further accentuated that following the closure of this case, the work of the Unemployment Insurance Fund can stride forward unimpeded. The focus now shifts to constructing effective employment opportunities for the unemployed, a mission critical to the nation's socio-economic welfare.

With the Supreme Court of Appeal's judgment, there is finally a sense of closure and a reinforced trust in the rule of law. This outcome does not just preserve the financial integrity of the UIF but also safeguards the interests of South African workers, ensuring that provisions set aside for unemployment relief are judiciously managed.