GROUNDUP: Gauteng government’s R144m gift to beauty training company
Officials are still on duty, despite serious forensic audit findings.
The Gauteng government's social development department has provided a staggering R144 million to Beauty Hub Academy, a nonprofit organisation, to train young beauticians and offer beauty services to older individuals. This funding significantly exceeds the average subsidies allocated to social welfare services for Gauteng's most vulnerable populations.
However, a 2024 forensic audit conducted by FSG Africa revealed that the academy engaged in questionable practices. It was found that funds were being transferred from the nonprofit Beauty Hub Academy to a private company with the same name, which is not eligible for government funding. This revelation has prompted calls for disciplinary action against four senior officials at the Gauteng Department of Social Development (GDSD).
Despite the findings, disciplinary actions are still pending. The auditors also identified issues such as conflict of interest, related party transactions, and violations of the nonprofit's own policies. The department has failed to disclose details about all the nonprofit organisations it funds online, raising concerns about transparency.
GroundUp, a news organization, has been actively pursuing the information and has won a court case to obtain these documents. The audit findings led to the discontinuation of funding for the academy in the 2024/25 financial year. The funding, granted between 2017/18 and 2023/24, was primarily used for training 1,800 beauticians and hairdressers in various locations across Gauteng.
The Gauteng government's funding patterns are extremely disproportionate compared to the average subsidies provided for other social welfare services. While the Beauty Hub Academy received R144 million over several years, a child and youth care centre received an average of R2.6 million. The academy also received additional funding for providing beauty services at old age homes, a total of R14 million between 2017 and 2023.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
