Rubicon Communications CC and its CEO, Hangwani Mudangawe Nengovhela. Image: SIU
NPA
1Min
South Africa
A repayment deal has been reached after millions meant for skills development were spent within two months, leaving 100 learners without training opportunities.
The Special Investigating Unit (SIU) has secured an Acknowledgement of Debt from Rubicon Communications CC and its Chief Executive Officer, Hangwani Mudangawe Nengovhela, for the repayment of R2.7 million misused from the National Skills Fund (NSF).
The agreement commits the company to monthly repayments of R74,772.29 starting on 1 May 2026, with interest accruing until the full amount of R2,699,000 is settled.
Rubicon Communications was awarded nearly R2.7 million in November 2018 to implement a 12-month leadership and skills development programme for 100 learners. The initiative aimed to equip participants with a National Certificate in Clothing, Textile, Footwear and Leather Manufacturing.
However, an SIU forensic investigation revealed that the funds were depleted within two months between November and December 2018, before the programme could begin. The money was instead diverted to operational costs, including logistics, machinery purchases, rentals, loan repayments, school fees, and personal transfers.
The SIU said R1.39 million was spent on operations and logistics, R200,000 on machinery, and R90,000 on rentals, among other expenses. By the end of December 2018, no funds remained to support the intended training programme.
As a result, the learnership never materialised, depriving 100 learners of valuable skills development opportunities.
The investigation was conducted under Proclamation No. 253 of 2025, leading to negotiations that resulted in the repayment agreement signed in February 2026.
The SIU confirmed that the agreement does not shield those involved from possible criminal prosecution. Any evidence of wrongdoing will be referred to the National Prosecuting Authority (NPA).
The unit said the recovery reinforces its mandate under the Special Investigating Units and Special Tribunals Act 74 of 1996 to recover public funds and hold those responsible for corruption and maladministration accountable.
