Seda said the disbursement of stipends to SMMEs was expected to start in August 2024, after all regulatory requirements have been completed. Picture: Supplied
Durban — Trainees at a Pinetown-based SMME, MTL Training and Projects, who have raised concern over the non-payment of their stipends, are likely to be paid by August.
The SMME Micro Enterprise Support Programme, is implemented by the Small Enterprise Development Agency (Seda), and funded and led by the National Skills Fund (NSF).
According to its website, MTL is a training provider offering skills training in the fields of Construction, Business, Energy and Water, Agriculture and Education.
Lungisani Dlamini from KwaNdengezi outside Pinetown said injustice was being done to the unemployed youths.
“Here we have a company called MTL Skills Training and Development which approached our communities from KwaNdengezi, Hammarsdale, Ntshongweni and Inanda and many other places.
“It offered to teach unemployed youth business skills and give them certificates when they finish the course and they said learners will also get monthly stipends,” Dlamini said.
He added that the programme turned out to be a 21-month mentorship arrangement requiring only three months of training.
Dlamini said the communities suspected that there was something wrong due to the institution’s failure to deliver on its promise of stipends.
There have been WhatsApp voice notes where two female voices can be heard discussing their contract, and about not being clear whether it was a mentorship or a training programme, although participants would undergo compulsory three months of training.
MTL Projects said there were specific difficulties faced by the project.
A spokesperson, identifying herself as a Ms Majola, said that the National Skills Fund had provided official responses regarding the challenges encountered by the programme.
“Our understanding of the main problem regarding the programme is the non-payment of learner stipends. The reason for the non-payment of learner stipends for the SMME beneficiaries is that there has been no provision for SMME stipends. We are made to understand that the National Skills Fund and Seda are in the process of finalising the provision for the beneficiary stipend,” Majola said.
Seda spokesperson, Boy Ndala told the Daily News that stipends had not been part of the initial plan, but the NSF would be sharing details and the stipends could be expected from the beginning of August.
“We would like to indicate that the stipends were not part of the Seda and NSF initial partnership agreement.
“However, the two entities have since taken steps to correct this situation. The Department of Higher Education and Training has approved an additional amount for this project to cater for the stipends. The NSF will release the budget to Seda for the payment of stipends to the SMMEs participating in the New Venture Creation programme.
“The disbursement of stipends is expected to start in August 2024, after all regulatory requirements have been completed,” Ndala said.
Stats South Africa, reported recently that SA like many countries globally, is grappling with the challenge of youth unemployment. Supporting this are statistics indicating a 45.5% unemployment rate among young individuals (aged 15-34 years), in contrast to the national average of 32.9% in the first quarter of 2024.
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Daily News