A South African job firm has been ordered by a court to repay R52 million ($2,751,762) to the Gauteng provincial government after failing to create 75,000 job opportunities.
According to South Africa’s SABC news, the Gauteng High Court, in their ruling, said the firm Amahlo Consulting Services (ACS) received just over R59 million ($31 327 752) between 2016 and 2019 and only created 142 job openings, leading to legal action.
‘’Unfortunately, legal processes tend to take a little bit longer than one would have imagined. So now that the judgement has been done, it is to recover what monies are due to be paid,” said Saki Zamxaka from the Gauteng provincial government.
The contract awarded to ACS was part of the Gauteng government’s Vuthela project, aimed at creating employment and entrepreneurship opportunities for unemployed youth.
High unemployment rate
Millions of South Africans aged 15 to 24 are unemployed, with President Ramaphosa, in his last national address, saying steps are being taken ‘’to address the youth unemployment challenge.”
South Africa is expected to register the highest unemployment rate in Africa in 2024, with around 30 percent of the country's labour force being unemployed, according to research website Statista.
The jobless rate reached 31.9 percent by the end of 2023, according to South Africa’s statistics agency.
➤Click here to follow our WhatsApp channel for more stories.
