Friday, 29 May 2026
The National Skills Fund (NSF) has terminated its Memorandum of Agreement (MoA)
with Phila Jordan Capital (PJC), the implementing partner responsible for the Aviation
Training Programme in Gauteng, following repeated contractual non-compliance
resulting in the breach of the MoA provisions, , persistent learner welfare concerns,
identified governance failures, and concerns regarding the management and
utilisation of public funds.
The decision follows several months of engagements between the NSF and Phila
Jordan Capital aimed at resolving serious concerns regarding the implementation and
management of the project. Despite numerous interventions, formal meetings, notices
of non-compliance, and opportunities afforded to the service provider to remedy the
identified challenges, the NSF concluded that PJC had failed to fulfil its contractual
obligations and demonstrated an inability to sustainably and responsibly manage the
programme.
Central to the NSF’s concerns was the continued unauthorised relocation of learners
from Johannesburg to Pretoria and other areas without prior consultation or approval
from the Fund, despite explicit directives instructing the service provider not to proceed
with such relocations.
During an urgent meeting held on 30 January 2026 between the NSF and Phila Jordan
Capital, the Fund expressly communicated that it did not support the haphazard
movement of learners, particularly where such decisions would negatively affect
learner welfare, training conditions, and access to host employers. Despite this
position, learners were relocated without a proper implementation plan, resulting in
severe hardship for some learners who were left stranded and without access to
personal belongings, including clothing and toiletries.
Following the disruptions caused by the relocation of learners, Phila Jordan Capital,
led by its Chief Executive Officer and Chairperson of the Board, met with the NSF on
4 February 2026 and formally apologised for the inconvenience and distress caused
to learners, parents, and stakeholders. PJC subsequently issued a public statement
on 5 February 2026 through various media platforms acknowledging responsibility for
the disruptions. The NSF immediately acknowledged the apology in a public response.
“While the NSF notes the apology from Phila Jordan Capital, the SDP has a
responsibility to safeguard the well-being and the interests of learners and to ensure
that public funds are utilised in a manner that upholds accountability, quality, and
learner dignity”, read the NSF statement released on 5 February 2026..
However, despite these undertakings and assurances, the NSF continued to receive
complaints from learners regarding further relocations and ongoing instability within
the programme. In April 2026, the NSF issued another correspondence to PJC after
learners were once again relocated from Pretoria to Johannesburg without
consultation with the Fund, contrary to the conditions of the MoA and commitments
previously made by the service provider.
The NSF had previously conducted due diligence on the original learner
accommodation and had satisfied itself that the facilities were appropriately located in
close proximity to host employers in Johannesburg. The subsequent relocation of
learners to Pretoria placed excessive strain on learners, many of whom were forced
to wake up during the early hours of the morning to travel to Johannesburg and only
returned late in the afternoon due to heavy traffic congestion. This arrangement
negatively affected learner well-being, attendance, concentration, and overall training
performance and resulted in some of the leaners dropping out.
In addition to the accommodation challenges, the NSF became increasingly
concerned about the persistent non-payment and delayed payment of third-party
service providers supporting the implementation of the programme, including transport
providers, accommodation providers, and implementation partners responsible for
programme delivery. These challenges disrupted the smooth running of the
programme and further compromised the learning environment.
The NSF also identified serious reporting and governance deficiencies in the manner
in which PJC managed project funds and submitted quarterly reports. Supporting
documentation and evidence required for financial accountability were frequently
missing or incomplete, limiting the ability of the NSF to verify expenditure and ensure
proper utilisation of public funds. These failures constituted material breaches of the
MoA.
The culmination of these challenges resulted in protests by affected learners at the
National Skills Fund offices in Pretoria, highlighting the extent of dissatisfaction,
frustration, and distress experienced by learners participating in the project.
“The National Skills Fund has a responsibility to protect learners, safeguard public
funds, and ensure that all implementing partners uphold the highest standards of
governance, accountability, and ethical conduct. We cannot allow a situation where
learners are subjected to instability and hardship while public resources are not
adequately accounted for,” said the Acting Chief Executive Officer of the National
Skills Fund, Ms Melissa Erra.
“The termination of the Memorandum of Agreement with Phila Jordan Capital was not
a decision taken lightly. However, after extensive engagements and repeated
opportunities afforded to the service provider to remedy the situation, the Fund had no
alternative but to act decisively in the interest of learners, the integrity of the project,
and the protection of public funds,” added Ms Erra.
The NSF will continue to closely monitor developments relating to the investigation as
part of its commitment to ensuring accountability and pursuing the recovery of any
funds that PJC did not account to the satisfaction of the NSF reporting requirements.
The Fund wishes to assure learners, parents, host employers, and all affected
stakeholders that engagements are already at an advanced stage to rescue the project
and ensure continuity of learning and training activities with minimal disruption.
Measures are being implemented to protect the interests of learners and to ensure
that affected beneficiaries continue to receive the necessary support.
The National Skills Fund remains committed to strengthening oversight, enforcing
accountability, and ensuring that all funded programmes are implemented in a manner
that upholds learner dignity, protects public resources, and advances South Africa’s
national skills development agenda.
Ends!
ISSUED BY NATIONAL SKILLS FUND: PUBLIC RELATIONS
AND COMMUNICATION UNIT
