Johannesburg – MPs this week gave the Department of Labour a dressing down for the failure of the department’s entity, the Compensation Fund, which has obtained disclaimer audit opinions for the past 10 years.
The MPS have also called for an urgent turnaround at the entity.
Lindelwa Dunjwa, the chairperson of the portfolio committee on employment and labour, said it was unacceptable that the fund could not get its books in order.
“You can’t have 10 years of disclaimers, there is something fundamentally wrong. This whole mess that the Compensation Fund finds itself in talks more about the capacity of the leadership,” said Dunjwa.
The committee also took issue with the fact that the Unemployment Insurance Fund (UIF) had regressed on its audit outcomes and called on the entity to act on the warning signs.
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“The UIF and Compensation Fund boards have the responsibility to make sure that the challenges at the two entities are addressed, no matter how difficult they might be,” Dunjwa said.
The entities provide financial relief to South Africa’s labour market.
The UIF gives short-term relief to workers when they become unemployed or are unable to work because of maternity, adoption leave, or illness.
The Compensation Fund provides assistance to employees who are injured or contract diseases through the course of their employment.
Employment and Labour Minister Thulas Nxesi said the government would, through National Economic Development and Labour Council, call for a speedy policy and legislative review to deal with the problems at the two entities, which have been exposed by Covid-19.
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