DA welcomes action on UIF fraud and supports Auditor-General’s recommendations
2 September 2020
The Democratic Alliance (DA) welcomes the announcement by the Minister of Employment and Labour, ThulasNxesi, that senior Unemployment Insurance Fund (UIF) officials, including Commissioner TebohoMaruping, have been placed on precautionary suspension.
This follows an investigation by the Auditor-General (AG) into fraud and financial mismanagement associated with the UIF’s Covid-19 Ters benefit scheme.
The AG found, inter alia, that a new system implemented for Ters incorrectly calculated the benefits for the first lockdown period (27 March to 30 April) by not taking into account the actual period of labour inactivity and the portion of the salary paid by employers, resulting in significant overpayments.
Due to weak financial controls, a large number of Ters payments were also made to people who are below the legal age of employment, deceased, working in government, receiving social grants or students funded by the national student financial aid scheme. A total amount of R169 900 was paid to individuals who were indicated as being in prison according to the Department of Correctional Services database.