Ilitha Telecommunications, an internet service provider (ISP) founded by former Vodacom Business and South African Airways CEO Vuyani Jarana, is embroiled in a payment dispute with its contractors in the Eastern Cape.
The contractors allege the ISP left them hanging after giving them short salaries, incorrect payslips and UI19 forms after they completed a network installation and cable fitting project in Mdantsane, a township situated 15km away from East London.
The UI19 form is a mandatory document in South Africa used for unemployment insurance purposes. It’s issued by the Unemployment Insurance Fund (UIF) under the Department of Employment and Labour.
Ilitha has confirmed the dispute to ITWeb, saying it is working to address the issues with the contractors.
According to one of the contractors, despite Ilitha’s management in East London promising to address the issues, no remedies have been provided to date.
ITWeb understands that about 40 contractors have been impacted.
“The employees have reached out to the East London office of Ilitha Telecommunications, but the company has not responded. E-mails were also sent, yet no reply has been received,” said the contractor.
The contractor added that the labour department has also been involved, but has not compelled the company to issue the correct documents, preventing employees from claiming their benefits on time.
In a statement to ITWeb, the ISP says: “Ilitha Telecommunications is aware of issues relating to UIF paperwork for several individuals engaged on short-term, fixed contracts in the Mdantsane area earlier this year.
“We take these matters seriously and have been working closely with the Department of Labour and a local basic conditions inspector to resolve them.”
According to the ISP, correct UI19 forms were supplied shortly after the error was identified, and, “to the best of our knowledge, all PAYE and UIF contributions for the project were paid in full”.
“We apologise for the distress or inconvenience caused by this administrative error. Instead of bringing in established internal teams, Ilitha’s business model deliberately prioritises hiring and training teams from the communities in which we operate – a choice that creates short-term employment and upskilling as well as a cash injection into local households. Where issues do arise, we are committed to resolving them quickly and transparently.
“Anyone who believes that a payment or document remains outstanding is encouraged to contact Ilitha directly at info@ilitha.com so that the matter can be resolved.”
Another contractor that ITWeb spoke to said the representatives of Ilitha came yesterday (Wednesday) and delivered the UI19 documents. “Tomorrow morning (Thursday), we will go to the labour offices to submit them.”
Ilitha says it remains actively engaged in Mdantsane, with ongoing work in Ward 48 and Ward 20, and plans to expand into additional wards across Buffalo City.
“We value the collaboration of ward councillors and local business chambers, who play an important role in our labour localisation philosophy. If any challenges arise while working with our teams or contractors, we encourage individuals to reach out to Ilitha’s leadership or connect through established community structures. Our commitment is to building lasting partnerships and helping communities move confidently toward the future,” says the company.
Earlier this year, Ilitha secured an undisclosed sum of funding to expand fibre connectivity in SA’s low-income areas.
The ISP received a “significant” investment from Meridiam at the United Nations International Telecommunication Union conference in Geneva, Switzerland.
According to the company, its ambition is to expand Ilitha’s high-speed fibre network to at least 500 000 low-income homes, impacting over two million South Africans, and unlocking economic opportunity and job creation in these underserved communities.
Jarana launched Ilitha in 2019, promising affordable internet in underserviced areas. The company debuted its brand and services in Mdantsane.
The ISP received its initial investment from Microsoft Airband.
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