Johannesburg – The agreement signed by the Special Investigating Unit (SIU) with Rubicon Communications to repay millions of rand that was misused from funds originally meant for skills development has been hailed by the Department of Higher Education and Training.
Reports indicate that Rubicon Communications, owned by famed fashion designer Hangwani Mudangawe Nengovhela, was awarded about R2.7 million in public skills-development funding from the National Skills Fund (NSF) in November 2018.
The funding was to run a 12-month youth leadership and skills-development programme for 100 learners.
The project was scheduled to start in 2019 and was meant to equip participants with a National Certificate in Clothing, Textile, Footwear, and Leather Manufacturing.
However, this week on Thursday, 9 April 2026, the SIU revealed that the funds had been spent within just two months (November–December 2018), long before any training could begin.
The money was used for operations and logistics, machinery purchases, rentals, loan repayments, school fees, and personal transfers to individuals linked to the company
Consequently, the leadership programme never took place, denying 100 learners the opportunity to gain critical skills.
Commenting on the matter on Friday, 10 April 2026, Higher Education and Training Minister Buti Manamela stated that he welcomes “the decisive intervention by the SIU in securing the recovery of R2.7 million misused funds in the Rubicon Communications, skills development project”.
He added: “This outcome sends a clear message that public funds allocated for skills development must be protected and used strictly for their intended purpose, and that is empowering young people through education, training, and opportunity”.
The department said Minister Manamela has noted with serious concern the findings that the funds were depleted before the commencement of the training programme, effectively denying access to critical skills for the learners.
“This represents a failure not only on the part of the implementing agent, but raises important questions about oversight, controls, and accountability within the National Skills Fund,” the department said.
“The minister has therefore requested a full report from the NSF on the approval, disbursement, and monitoring of this project, including the internal controls that failed to prevent such misuse, and the steps being taken to ensure that this does not recur.
“This will include a review of consequence management, oversight systems, and the strengthening of funding models to ensure that disbursements are linked to verified delivery.”
The department stated that while the recovery of funds was a necessary step, it is not sufficient.
The department stated: “Accountability must be comprehensive, and where wrongdoing is identified, whether external or internal, it must be addressed decisively.”
The department said it will continue to work closely with the SIU and law enforcement agencies to ensure that all aspects of this matter were fully pursued.
“This case reinforces the urgency of ongoing reforms to strengthen governance, improve monitoring, and ensure that every rand entrusted to the post-school education and training system delivers real value to the people of South Africa,” the department said.
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