Vuvuzelas, wastefulness and fraud cost Compensation Commissioner R47 million: Remove Compensation Commissioner from office! - Solidarity

The Compensation Commissioner's 2010/2011 annual report shows expenditure of more than R47 million resulting from fraud and unauthorised and wasteful spending. The Compensation Commissioner's office splashed out on, among other things, vuvuzelas for the Soccer World Cup. This wastefulness is in stark contrast with the meagre R79 increase in the constant attendance allowance of South Africans who are unable to work due to occupational injuries and diseases and who require full-time care. According to trade union Solidarity, these figures are proof of the shocking maladministration and wastefulness that are the order of the day at the Compensation Commissioner. 

The Compensation Commissioner's 2010/2011 annual report reflects a loss of R25,5 million from the Compensation Fund due to fraud during the financial year in question. During this time, 160 fraud cases were investigated, but only around R2,4 million was recovered. So far, 13 officials of the Compensation Commissioner have been dismissed due to fraud and corruption. In addition, R2 million was wasted on interest owing to late payments to service providers, another R20,3 million was squandered on unauthorised expenses and R30 000 was spent on vuvuzelas for the 2010 Soccer World Cup.

The trade union today called for Compensation Commissioner Shadrack Mkhonto's removal from office, saying there was a clear lack of leadership in respect of internal financial control measures, management and reporting.

Furthermore, the Commissioner's administrative department and call centre also leave much to be desired. The call centre answered just under 370 000 of the estimated 590 000 calls made to the centre in the 2010/2011 financial year. In addition, only 1 475 of the 6 151 claims for occupational diseases were approved and 492 were turned down during this period. More than 4 000 claims were referred back for more information.

"The system is totally inaccessible and claims that are approved, are often not paid out or not paid on time. Over the past year, 15 summonses were issued against the Commissioner and 30 court applications were lodged to force the Commissioner to pay out claims," says Advocate Paul Mardon, Head of Occupational Health and Safety at Solidarity. "What's more, the constant attendance allowance of 6 500 people who are incapacitated because of an occupational injury or disease and who need full-time care was increased by a mere R79, from R1 300 to R1 379 a month," says Mardon.

The Compensation Fund is financed by employers' contributions, but the auditor was unable to verify the correctness of fines and interest of R404 million relating to contributions of employers who made late payments. The auditor commented that incorrect fines imposed and interest charged over the past year probably run into the millions.

Meanwhile, approximately a third of more than 2 000 applications for further treatment after the claims process were turned down. According to Mardon, claims that are finalised hastily defeat the purpose of the Act.

Solidarity is South Africa's only trade union with a division dedicated to dealing with claims relating to occupational injuries and diseases. "Thanks to this division, Solidarity members with occupational injuries and diseases received more than R170 million in compensation from the Compensation Commissioner during the first eight months of this year," says Mardon.

Statement issued by Advocate Paul Mardon, Head: Occupational Health and Safety, Solidarity, December 8 2011

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