Unisa Enterprise paid millions despite tax non-compliance red flag
· Citizen
Embattled Unisa Enterprise has allegedly received over R2 million in public funding despite being flagged as tax non-compliant on the government supplier system.
Visit truewildgame.com for more information.
According to the Central Supplier Database (CSD), Unisa Enterprise is “active” and “in business,” with a verified bank account, value-added tax, and pay-as-you-earn registrations.
However, it flagged the entity’s overall tax status as “non-compliant”, a designation that can render a supplier ineligible for state contracts.
Unisa Enterprise allegedly secured NYDA funding
Despite this compliance red flag, the National Youth Development Agency paid Unisa Enterprise R2.6 million in public funds to provide entrepreneurship training to young people.
The payments were allegedly made in two tranches of R1.3 million, with the first paid in November last year and the second last month.
ALSO READ: Former Unisa student challenges VC over court claim
The CSD serves as the single source of key supplier information for organs of state and provides consolidated, accurate, up-to-date, complete, who were and verified supplier information to procuring organs of state.
Treasury regulations require state organs to ensure suppliers are tax-compliant.
Unisa Enterprise is reportedly registered as a private company wholly owned by the University of SA (Unisa), a public higher education institution.
Company failed to pay salaries
Despite the NYDA millions, the company has failed to pay salaries, with some owed from as far back as May last year, as well as severance package payments.
Four senior managers, including the human resources and procurement manager, retrenched last month were yet to receive their severances.
ALSO READ: Unisa confronts ex-student over explosive claims
“Instead of paying us what was owed, we were retrenched. The company received the funds from NYDA but failed to pay the workers,” an axed manager said.
She alleged Lesetsa Matshekga, the company’s CEO, has single-handedly run the company to the ground and was now finishing off the little that was left of the company’s funds and resources.
Workers turned to management
In October last year, workers turned to the university’s management committee to intervene.
But Unisa, which is the 100% shareholder of the company, is seemingly not bothered, saying the enterprise was an autonomous entity operating independent of Unisa and accountable to a board.