Renowned fashion designer and CEO of Rubicon Communications CC has agreed to repay nearly R2.7 million in misused funds from the National Skills Fund (NSF), intended for a leadership and skills development programme.
According to Special Investigation Unit (SIU) spokesperson Selby Makgotho, Hangwani Mudangawe Nengovhela has committed to repaying R2 699 000 in monthly instalments of R74 772.29 from 1 May, with interest accruing until the full amount is settled.
Funding awarded for skills development programme
Makgotho said the NSF initially awarded Nengovhela’s company R2 699 968.75 in November 2018 to deliver a leadership and skills development programme for 100 students.
The project was meant to start in 2019 and run for 12 months.
It was intended to equip students 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,” Makgotho said in a statement on Thursday.
“The money was diverted to cover Rubicon’s operational expenses, logistics, machinery purchases, rentals, loan repayments, school fees and personal transfers.”
Breakdown reveals extensive diversion of funds
Makgotho said the company spent R1.39 million on “operations and logistics”, R200 000 on machinery and R90 000 on rentals.
Significant amounts were transferred to individuals linked to the company.
By the end of December 2018, the funds had been spent, leaving nothing for the students.
“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,” Makgotho said.
“The SIU, acting under Proclamation No. 253 of 2025, investigated the matter and engaged Rubicon Communications CC to recover the misused funds.”
Following negotiations, the company signed an acknowledgement of debt in February 2026, ensuring that the NSF will recover the full amount plus interest and costs.
Repayment secured, but legal risks remain
The agreement and payment that follow do not exempt the parties involved from being referred to the prosecuting authority for potential criminal prosecution, Makgotho said.
“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.”
