The Department of Employment and Labour is tailing a number of companies that allegedly claimed Covid-19 TERS money despite being declared non-compliant.
During a breakfast session in Mahikeng, North West on Tuesday, the department confirmed that it was deliberating over the matter.
According to the department’s spokesperson Teboho Thejane, companies that did not comply with the Unemployment Insurance Fund (UIF) laws are being dealt with by the fund through its Follow the Money project.
Thejane said the department is after employers who allegedly defrauded the fund by claiming and not paying the money to employees.
“Phase two of the UIF’s Follow the Money project, which started this month, also has its sight set on employers that have not declared employees and kept Covid-19 TERS monies to themselves instead of paying their workers,” said Thejane.
During the session, UIF commissioner Teboho Maruping announced the implementation of an “on the spot as well as an overtime recoup process”.
Maruping said: “The process will apply where, prior to March 2020, employees were not declared by employers. In such instances, 70% of the 2% contributed by the fund will be recovered immediately.”
He added that with this approach, only 30% would be recouped from employers over a period of time in cases where money was claimed from the UIF but did not reach the intended employees.
“50% will be immediately recouped by our teams. We are checking all the companies that were paid Covid-19 TERS, but at the moment we are focusing on the ones that have been the focus of the auditor-general of South Africa. Once that is done, we will visit all the other companies that were paid by the UIF.
“When we visit you for the Follow The Money project, we are checking the information you declared with us, the number of employees and figures that an employer has declared with the fund is what we will look at.”
Thejane noted further that the fund, which had employed six auditing companies for the project, has recovered more than R900-million.
However, he said the companies are now being bolstered by a team from the fund that is responsible for conducting internal verifications of the declared employees.
Maruping and UIF deputy director Siphamandla Gumede have called on employers to comply with the laws of the fund. The duo further warned the companies about the risks involved if they do not comply with the UI Act (Unemployment Insurance Act).
“Employers are obligated by section 56 of the Unemployment Insurance Act and chapter two of the Unemployment Insurance Contributions Act to register and declare their workers to the fund, as well as pay monthly contributions,” said Maruping.
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