The Special Investigating Unit (SIU) has secured an Acknowledgement of Debt from Rubicon Communications CC and its Chief Executive Officer, Hangwani Mudangawe Nengovhela, after the company was awarded nearly R2.7 million for a youth leadership and skills development programme that never happened.
The company was allocated the money in November 2018 by the National Skills Fund (NSF) to train some 100 learners.
“The project was meant to start in 2019 and run for 12 months, equipping learners with a National Certificate in Clothing, Textile, Footwear and Leather Manufacturing.
“However, the SIU’s forensic analysis revealed that the funds were spent within two months of receipt, between November and December 2018 -- long before the training could begin.
“The money was diverted to cover Rubicon’s operational expenses, logistics, machinery purchases, rentals, loan repayments, school fees and personal transfers. For example, R1.39 million was spent on ‘operations and logistics’; R200 000 on machinery, R90 000 on rentals, and significant amounts were transferred to individuals linked to Rubicon,” the SIU said in a statement.
By the end of 2018, the NSF allocation had been depleted with “nothing for the learners the project was meant to empower”.
“This misuse of funds meant that the leadership programme never took place, and 100 learners were denied the opportunity to gain critical skills that could have improved their livelihoods.
“The SIU, acting under Proclamation No. 253 of 2025, investigated the matter and engaged Rubicon Communications CC to recover the misused funds. After negotiations, the company signed an Acknowledgement of Debt in February 2026, ensuring that the NSF will recover the full amount, plus interest and costs,” the statement continued.
The corruption busting unit emphasised that the agreement and repayments do not “exempt the parties involved from being referred to the prosecuting authority for potential criminal prosecution”.
“This recovery underscores the SIU’s commitment to protecting public funds and ensuring accountability. Money meant to uplift South Africans through skills development will now be returned to the NSF, reinforcing the principle that corruption and maladministration will not go unchallenged.
“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority for further action,” the statement concluded. – SAnews.gov.za
