Matongoni Youth Employment is suing Makgale Travel and Tours for an alleged breach of their agreement.
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Matongoni Youth Employment is suing a host employer, alleging it breached a Youth Employment Service (YES) tourism graduate programme agreement by appointing 21 participants who allegedly did not meet the programme’s minimum qualification requirements.
According to a combined summons filed in the Randburg Regional Court on 26 June, Matongoni General Trading, trading as Matongoni Youth Employment, is suing Makgale Travel and Tours for R268 275 in damages arising from what it describes as a material breach of their host agreement.
Matongoni alleges that it entered into an implementation agreement with YES in April to facilitate the placement of tourism graduates across South Africa under the Tourism Graduate Recruitment Programme.
As part of the arrangement, Matongoni was responsible for placing graduates with host employers and administering their monthly stipends using funds provided through the programme.
Dispute over graduates in youth employment programme
Court papers state that Matongoni subsequently concluded a host agreement with Makgale Travel and Tours in March.
Under the agreement, the participants would receive workplace experience for 12 months, while Matongoni would place them on its payroll and pay each participant a monthly stipend of R6 900.
In turn, the host employer was required to provide a lawful working environment, meaningful workplace exposure, mentorship and comply with all YES programme requirements.
Although Matongoni was contractually responsible for recruiting graduates, the summons alleges that Makgale informed the company that it wished to recruit participants from its own database.
Matongoni claims that when it later requested proof of the participants’ qualifications, Makgale failed to provide evidence that 21 participants met the programme’s requirement of holding recognised tourism-related qualifications.
R268 000 lawsuit
According to the Matongoni, the alleged failure to comply with the programme’s eligibility criteria resulted in the termination of the placements.
Despite this, Matongoni says it had already paid April 2026 stipends totalling R144 900 to the 21 participants.
The company further claims that the alleged breach resulted in the cancellation of the host agreement, causing it to lose anticipated administration and monitoring income of R84 000 and leaving it liable for accrued leave pay and notice pay for the affected participants.
The damages claimed comprise R144 900 for stipends paid to the 21 participants; R84 000 for alleged loss of income under the YES agreement; R7 875 in accrued leave pay; and R31 500 in one week’s notice pay.
The total claim amounts to R268 275, together with interest and legal costs.
Court papers state that Matongoni’s attorneys issued a letter of demand to Makgale on 15 May, requesting payment within 14 days.
Matongoni claim that no response was received, prompting the institution of legal proceedings.
The Hartbeespoort Community Development Initiative’s (HCDI), which represents Makgale Travel and Tours, said they have not received any summons.
Mmeli Mdluli of HCDI said they received letters of demand and responded.
“We are hearing about the summons from you,” he said.
