Fat cats criticised as Limpopo government agency tries to cut 100 jobs

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. 

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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.

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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.