DA lays charge against ANC over alleged failure to pay UIF

7 September 2021

Pictures can be found here, here, here and here. 

This morning the DA laid a charge with the South African Police Service (SAPS) against the ANC over the ruling party’s alleged failure to pay Unemployment Insurance Fund (UIF) contributions to the state.

This follows a claim by disgruntled staffers at Luthuli House that since 2018 the ANC has been deducting UIF contributions from workers but not paying them over to the government. If true, this would constitute a criminal offence in terms of the Unemployment Insurance Contributions Act of 2002 and the Tax Administration Act of 2011.

Ten days ago we wrote to the Minster of Employment and Labour, Thulas Nxesi, and asked him to clarify whether the allegations were true. As the responsible Minister he has a duty to account and to announce what action he intends taking against the ANC if it has violated the law.

The DA has to date not received a response from the Minister other than an acknowledgement of receipt from his office.

Failure by an employer to pay over UIF contributions, employees’ tax (PAYE), or skills development levies to the South African Revenue Service (SARS) is a breach of the law and a criminal offence. In August 2019, the High Court in Pretoria ordered state-owned arms manufacturer Denel to pay over UIF- and PAYE deductions to SARS by the end of that month, following an application by the trade union, Solidarity.

Over the past 18 months, many employers have been battered by the Covid-19 pandemic and the associated lockdowns. But they have continued to meet their statutory obligations in terms of UIF and PAYE payments. It is incumbent upon all employers to pay over UIF deductions to SARS. After all, this money ultimately belongs to the workers.

As the ruling party, the ANC has a special duty to serve as an exemplar to other employers. And as the ANC is being accused of criminal behaviour by its own staff members, the matter requires urgent investigation by SAPS.

The fact that the ANC reportedly owes SARS over R80 million in outstanding PAYE contributions, and an unknown quantum in UIF contributions, reveals the depths of the ruling party’s incompetence and dysfunctionality. The ANC shows complete contempt for the institutions of state. If the party can’t administer its own payroll properly, then it is not fit to govern or to lead a modern industrial economy.

The DA has pressed these charges with SAPS for the fact of the matter is that if the DA does not intervene, workers run the risk of foregoing their rightful benefits.

The ANC is incapable of doing the right thing. In fact, it simply can’t get things done – from registering its local government election candidates on time to obeying the very laws it passes in Parliament. The ANC should face the consequences for its criminal uselessness, both at the polls in the forthcoming municipal elections and in court.

Issued by Michael Cardo and Michael Bagraim, DA, 7 September 2021