AMAHLO Consulting walked away with millions of rand in profit after promising the provincial government it would create 75,000 internships for unemployed youths in the province over three years, but ended up creating just 142 such opportunities.
The contract with Amahlo Consulting, awarded without a tender process, was part of the Gauteng government’s Vuthela project, meant to create employment and entrepreneurship opportunities for unemployed youth.
The programme, an initiative by the Gauteng Enterprise Propeller (GEP), was launched in June 2016 by Lebogang Maile, the province’s then MEC for economic, environment, agriculture & rural development.
An investigation meant GEP entered into the contract with Amahlo had been illegal and had been signed without the authority of the board by then GEP acting CEO Leah Manenzhe.
The R65m contract signed by Manenzhe with Amahlo was to create 75,000 job opportunities.
However, a few months later, the contract was amended, reducing the job opportunities to 5,000 but keeping the cost at R65m.
The GEP could only verify 142 internships that had been created by the programme.
The GEP approached the South Gauteng High Court, demanding that Amahlo pay back R52m and the court ruled in its favour.
Amahlo has asked the court for leave to appeal the judgment and the matter was set to be heard on Tuesday.
Court’s ruling still pending.
