Fat cats criticised as Limpopo government agency tries to cut 100 jobs
Voluntary separation packages were offered to employees after the Limpopo Economic Development Agency was told it will no longer receive state funding.
The Limpopo Economic Development Agency (LEDA), a struggling parastatal under the Limpopo provincial government, has offered employees a voluntary separation package initiative aimed at reducing overhead costs.
The move affects nearly 100 employees.
Voluntary separation package offered to LEDA employees
This week, LEDA's outgoing group CEO Thakhani Makhuvha confirmed the move, stating that the separation package is being offered to employees between the ages of 55 and 64. He emphasised that no employee will be forced to accept the offer.
Limpopo lost a staggering 55 000 jobs from the fourth quarter of 2024 to the first quarter of 2025 – that's close to 20% of the jobs lost nationally. This is according to the latest Quarterly Labour Force Survey report for the first quarter of 2025 released by Stats SA. The province's expanded unemployment rate — at an astounding 48.6% — is the third highest in the country.
ALSO READ: Outrage over Limpopo council's R3 million Warmbaths conference
Responding to The Citizen's inquiry, Makhuvha explained that the decision comes after a directive from the Limpopo legislature. The directive stipulates that so-called '3D' entities in the province — including LEDA and Gateway Airports Authority Limited (GAAL) — will no longer receive state funding and must become self-sustainable by 2030.
Makhuvha said the VSP initiative affects approximately 100 employees. 'This is voluntary and employees are not being forced to participate,' he reiterated.
Notification was insufficient and abrupt
However, this has sparked concern among staff. Several affected employees reportedly received notifications via email and were given only three days to make a decision, which some viewed as insufficient and abrupt.
The voluntary separation initiative has been perceived by many as the beginning of a broader retrenchment process. They said LEDA continues to face operational and financial challenges under its current leadership. Recently, employees of one of LEDA's subsidiaries, Limpopo Connexion, were reportedly paid late due to financial constraints.
A union representative in LEDA speaking on condition of anonymity described the situation as a crisis requiring urgent intervention from the provincial government. 'We are led by blind men and women, people with no vision for the future of this company and its workers,' the representative said.
Union takes aim at high-paid executives
The union also criticised the exclusion of executives from the voluntary separation process, claiming that some executives over the age of 55 remain unaffected. Makhuvha clarified that executives are employed on fixed five-year contracts and are therefore not eligible for voluntary separation.
'These are the very people deciding our futures — the same ones who are failing to manage and rescue the agency,' the union member said.
ALSO READ: Limpopo mayor advised to make many babies at grand wedding
They further alleged that some affected employees were only consulted after receiving the letters through a virtual process led by Makhuvha. 'How do you consult people after the fact?' the member asked.
Despite LEDA's financial woes, the agency reportedly continues to hire high-earning executives — some allegedly transferred from provincial government departments without undergoing formal interview processes.
According to LEDA's 2023/24 annual report, no executive earns less than R2.5 million per year, with the group CEO earning R4.5 million annually.
LEDA and its six subsidiaries have long been under scrutiny, particularly since the merger of four entities — LimDev, LIBSA, Trade Investment Limpopo and Limpopo Agricultural Development Corporation (LADC) — to form the agency.
Attempts to get comment from economic development MEC Tshitereke Matibe's office hit a brick wall. Departmental spokesperson Zaid Kala declined to comment, referring all media queries back to LEDA.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Maverick
an hour ago
- Daily Maverick
South African GDP grows by a paltry 0.1% in Q1, but agriculture shines
One thing that is as certain as the changing seasons is that as the year progresses, forecasts for South African economic growth in 2025 – which are mostly around 1.2% – will be downgraded, which in turn will blow out of the water many of the revenue and debt projections in Budget 3.0. South Africa's sluggish economy barely grew in the first quarter (Q1) of this year, expanding a pathetic 0.1% from Q4 of 2024, according to data released on Tuesday by Statistics South Africa (Stats SA). This 'growth' – at a pace that a snail could slither past – would have been a contraction of 0.3% were it not for a stellar performance by the agricultural sector, which grew its production by a hefty 15.8% in the first three months of the year. Following gross domestic product (GDP) growth of just 0.4% in Q4 of 2024 – revised down from an initial estimate of 0.6% – the data underscores the woeful state of South Africa's economy, which simply cannot seem to expand at a rate that exceeds population growth and creates jobs. Against this backdrop, it's no surprise that South Africa's unemployment rate rose one percentage point in Q1 to 32.9%. Worryingly, only four of the 10 industries on the production side of the economy posted growth, led by agriculture, a sector that is also extremely volatile. Agriculture biggest growth driver South Africa's descent into deindustrialisation was writ large in the data, with the manufacturing and mining sectors the biggest drags on the read, declining 2.0% and 4.1% respectively. Consumer spending perked up – helped by lower interest rates, slowing inflation and early pension drawdowns under the two-pot reforms – but it hardly shot the lights out. 'Consumer activity was stronger, with trade, catering & accommodation expanding by 0.5%. Retail trade, motor trade, accommodation and food & beverages contributed positively,' Stats SA said. Changes in GDP contributions Gross fixed capital expenditure – a key measure of investment – maintained its downward trajectory, falling 1.7%. And without investment growth, the economy will remain stuck in a rut. 'Consumer demand likely received a small boost from lower rates, higher disposable incomes given still-low inflation and pension reform. But none of this is sufficient to offset the soft outlook still painted by dismal investment. From this data alone, there is no clear indication that it might be reasonable to expect more robust growth going forward,' said Razia Khan, Chief Economist Africa at Standard Chartered Bank in London. Indeed, the outlook for Q2 is already troubling. What this means South Africa cannot attract investment, create jobs and reduce poverty without significantly faster rates of economic growth. Many of the country's crippling social ills, including rampant crime, are at least partly a reflection of this woeful pace of growth. This deprives the government of revenue, forcing it to borrow more, raising its debt-servicing costs – leaving it with less to spend on things such as education, welfare and health – in a vicious cycle that shows no sign of ending soon. The Absa Purchasing Managers' Index (PMI) fell 1.6 points in May to 43.1 – pointedly, its lowest level since the Covid-19 pandemic. This marked the seventh consecutive month that the PMI was in contractionary territory below the neutral 50 mark and bodes ill for the sector's performance this quarter. The return of the rolling power cuts, popularly known as 'load shedding', after a 310-day pause in Q1 did not help matters, but the economy has been trapped in slow-growth mode for years. There are a range of reasons for this depressing state of affairs, which continues to fuel the terrible trifecta of poverty, unemployment and inequality. Policy uncertainty continues to deter investment, along with mounting concerns about reliable water supplies and a crumbling road, rail and port network. Transnet is showing promising signs of a management turnaround, but it still has a mountain to climb. A high tax burden with little to show for it hardly inspires confidence. Sky-high levels of violent crime and the security costs that go with that are constraints to growth, while South Africa's failing public schools add up to a chronic skills shortage. And amid these domestic challenges and many more, the outlook for the global economy has been souring, not least because of US President Donald Trump's bewildering tariff 'policies' that top the ANC and the GNU in the League of Uncertainty. One thing that is as certain as the changing seasons is that as the year progresses, forecasts for South African economic growth in 2025 – which are mostly around 1.2% – will be further downgraded, which in turn will blow out of the water many of the revenue and debt projections in Budget 3.0.
The South African
12 hours ago
- The South African
NEW: Kaizer Chiefs DIDN'T have R3m bid rejected for striker!
It's clear Kaizer Chiefs are searching for a striker or two to boost their attack ahead of the 2025/26 season. Chiefs have been struggling in front of goal for several seasons now and will look to end those woes soon. Coach Nasreddine Nabi made it no secret that he wanted to bring in a striker, when he arrived at Chiefs. He didn't get his wish in his first window but was able to add two forwards in January. These being Tashreeq Morris and Glody Lilepo. These experienced stars were brought in to supplement a blunt-looking attack which featured Ranga Chivaviro, Ashley du Preez and a young Wandile Duba. While Morris proved to be a flop, Lilepo ended up being the club's joint top goal scorer with young Duba with five. That, however, just highlighted the need for a senior striker to shoulder that goal scoring burden. There have been a number of players mentioned in that regard, with DRC international Fiston Mayele one. Earlier on Tuesday, this publication reported that Chiefs had also made an enquiry for Etiosa Ighodaro. The player has spent the last couple of seasons on loan from Mamelodi Sundowns, and could now be keen for a permanent exit. Another option Amakhosi were rumoured to have an interest in is Simba SC striker Kibu Denis. Reports had recently circulated that Chiefs had put in a bid of R3 million to Simba for Denis. But according to FARPost , those reports are wide off the mark, because the club are not interested in the player. 'While initial reports linked him to several players, sources close to the coach confirm that his primary focus remains on Tanzanian international midfielder Feisal Salum, while emphatically dismissing any interest in Simba SC's Kibu Denis.' Wrote the publication. Chiefs fans, now that Denis seems not to be a target, which striker should the club target for next season? Let us know by clicking on the comment tab. Or by emailing info@ or sending a WhatsApp to 060 011 021 1. You can also follow @TheSAnews on X and The South African on Facebook for the latest news.
The Citizen
12 hours ago
- The Citizen
Slow and steady growth: GDP expands by 0.1%
Real Gross Domestic Product (GDP) has increased marginally by 0.1% during the first quarter of 2025, following an increase of 0.4% in the previous quarter. Despite the sluggish expansion, the South African economy continues clawing back ground lost from the blow of the Covid-19 pandemic, which saw GDP drop to a low of R954b in the second quarter of 2020 to R1 170b in the first quarter of 2025. 'The agriculture, forestry and fishing industry increased by 15.8%, contributing 0.4% to the positive GDP growth. This was primarily due to increased economic activities reported for horticulture and animal products. 'The transport, storage and communication industry increased by 2.4%, contributing 0.2%. Increased economic activities were reported for land transport, air transport and transport support services,' Statistics South Africa (Stats SA) said today. According to the institution, finance, real estate and business services increased by 0.2%, adding 0.1% to the GDP. 'Increased economic activities were reported for insurance and pension funding and auxiliary activities. 'The trade, catering and accommodation industry increased by 0.5%, contributing 0.1%. Increased economic activities were reported for retail trade, motor trade, accommodation and food and beverages,' Stats SA said. On the decrease was the manufacturing industry, which contracted by 2%. 'Seven of the 10 manufacturing divisions reported negative growth rates. The largest negative contributions were reported for the petroleum, chemical products, rubber and plastic products; food and beverages; and motor vehicles, parts and accessories and other transport equipment divisions. 'The mining and quarrying industry decreased by 4.1%, contributing -0.2%. The largest negative contributors were platinum group metals.' Expenditure on GDP Household final consumption expenditure (HFCE) is also on the rise – increasing by 0.4% and contributing 0.3% to total growth. 'The main positive contributors to the increase in HFCE were expenditures on transport [1.1% and contributing 0.2%], food and non-alcoholic beverages [0.5% and contributing 0.1%], restaurants and hotels [1.4% and contributing 0.1%], 'other' [0.6% and contributing 0.1%] and health [0.8% and contributing 0.1%]. 'The negative contributors were expenditures on recreation and culture, communication and housing, water, electricity, gas and other fuels. Final consumption expenditure by general government decreased by 0.1%. This was mainly driven by decreases in compensation of employees and purchases of goods and services. 'Gross fixed capital formation decreased by 1.7%, contributing -0.2%. The negative contributors to the decrease were residential buildings [-5.8% and contributing -0.6%], machinery and other equipment [-1.4% and contributing -0.6%], construction works [-2.8% and contributing -0.5%] and transport equipment [-3.1% and contributing -0.3%],' Stats SA said. Exports and imports Exports and imports also presented mixed results during the first quarter. 'Net exports contributed negatively [-0.3%] to expenditure on GDP. Exports of goods and services increased by 1%, largely influenced by increased trade in vegetable products, vehicles and transport equipment, excluding large aircraft and mineral products. 'Imports of goods and services increased by 2%, largely influenced by increased trade in chemical products, mineral products and machinery and electrical equipment,' the statement concluded. – Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
