The missing R1-billion: Labour Department must explain Compensation Fund figures
The Labour Department must explain what happened to R1-billion in Compensation Fund payouts, after a presentation to the Parliamentary Labour Committee this week revealed an inexplicable R1-billion shortfall in compensation paid out to injured workers in this last financial year.
During 2009/10 there has been a dramatic decline in payouts - from 150,090, amounting to R2,9 billion in 2008/09, to 87,800, amounting to R1,9 billion in 2009/10.
What is particularly peculiar is that the number of compensation claims made has remained steady in recent years (there was a fractional fall of just 1.5% in the number of claims made last year) yet the number of claims being paid out has halved in the space of a year:
- 2007/08: 209830 claims received; 1448 repudiated; 162411 paid
- 2008/09: 203711 claims received; 654 repudiated; 150090 paid
- 2009/10: 200599 claims received; 127 repudiated; 87800 paid
There may be a legitimate explanation for this, but neither the Director General of Labour, Jimmy Manyi, nor the Compensation commissioner, Mr. Shadrack Mkhonto, could provide one, when presenting the figures to Parliament.
These are finalised figures for 2009/10, barring the final month of March - and it is difficult to believe that in one additional month, an additional R1-billion of payouts will be registered.