The Gauteng Department of Social Development (GDSD) provided R144-million to the Beauty Hub Academy, a private beauty training school, to train 1,800 students over seven years. The academy, a non-profit organisation (NPO), received funding to train young beauticians and provide beauty services for older people. This makes it one of the department's highest-funded organisations, far exceeding the average subsidies for social welfare services for Gauteng's most vulnerable people.
A forensic audit by FSG Africa in 2024 found serious irregularities in the use of funds by the Beauty Hub Academy. The audit revealed that millions of rands of public funds were spent on rent and renovations for properties, at least one of which was owned by a property company that shares directors with the Beauty Hub Academy. The auditors also found that the academy's caterer, paid R8.4-million over three years, was owned by the daughter of one of the academy's directors.
The forensic auditors recommended disciplinary action against four senior GDSD officials – Onkemetse Kabasia, Solly Ndweni, Themba Msimanga, and Mbali Ndlovu – for their role in the irregularities. However, more than two years later, these disciplinary processes have still not been completed. Ndlovu, Msimanga, and Kabasia had previously been implicated in a 2019 forensic audit, which is under investigation by the Hawks.
The audit findings led to the department discontinuing funding to the academy in the 2024/25 financial year. The department is supposed to make details about all the non-profit organisations it funds available online, but it has not done so for years. A Promotion for Access to Information (PAIA) application by GroundUp for details of Beauty Hub's funding, as well as details of all GDSD's funding of non-profits from 2014 to 2024, was initially rejected but later granted in the Western Cape High Court.
The documents obtained through the PAIA application reveal that Beauty Hub received R144-million between the 2017/18 and 2023/24 financial years. The funding was allocated to train 1,800 beauticians and hairdressers on campuses in Johannesburg, Tshwane, Carletonville, and at the Lenasia military base. In 2017/18, the academy was given R14-million for 150 students, with funding increasing almost every year.
The Beauty Hub Academy used department funds to rent its headquarters from Sehlule Properties, of which two of the academy's directors, Joel Nkomo and Daisy Gama, are also directors. The academy paid almost R1.2-million over three years in rent. The auditors found it "strange" that the audited financial statements for the 2021/22 and 2022/23 financial years were a consolidation of both the NPO and the private company's accounts.
The funding contract with the department did not explain what the bungalows at the Lenasia campus, which were renovated with R464,000 in 2020/21, would be used for. In 2021/22, the academy received another R3.6-million for capital costs, including more renovations for bungalows and buying furniture. The academy also paid R8.4-million for catering to Edge Promotions and Events (Pty) Ltd, owned by director Daisy Gama's daughter, Nokwakha Gama, between 2020 and 2023.
Key points
- The Gauteng Department of Social Development provided R144-million to the Beauty Hub Academy, a private beauty training school, over seven years.
- A forensic audit found serious irregularities in the use of funds, including millions spent on renovations, rentals, and catering, benefiting companies linked to the academy's directors.
- Disciplinary action against several government officials has been recommended, but the processes have been delayed for over two years.
