The Public Service and Commercial Union (PSCU) of South Africa has demanded that Labour Minister Nomakhosazana Meth withdraw Thulani Tshefuta’s appointment as acting commissioner of the Unemployment Insurance Fund (UIF), saying the decision raises legal, governance and conflict-of-interest concerns.
The union, an inclusive civil service trade union operating across government agencies, municipalities, state-owned enterprises, and privatised sectors, wrote to Meth after the Department of Employment and Labour announced Tshefuta’s appointment in a statement issued under the name of acting director-general Jacky Molisane.
Molisane said the department “welcomes the appointment” of Tshefuta and described his assignment as central to improving the work of the UIF.
She said Tshefuta had been entrusted with “a critical mandate to lead and strengthen the Unemployment Insurance Fund in delivering meaningful and efficient services to the people of South Africa”.
Molisane said the department looked forward to Tshefuta’s contribution in “driving forward key reforms, strengthening governance, and ensuring that the Fund delivers on its mandate with excellence and accountability”.
Questions over legal and governance compliance
But the PSCU said Meth should withdraw the appointment because the department had not satisfied key legal and governance questions.
The union questioned whether the appointment complied with “Section 43 of the Unemployment Insurance Act” and public service appointment rules.
According to this section, the minister of employment and labour must officially appoint an employee of the department to serve as the commissioner.
The union said the UIF was not an ordinary government programme but a contribution-based insurance fund “funded by employees and employers.”
For that reason, the PSCU said, any appointment to lead the fund had to be lawful, transparent and properly explained to those whose money sustains it.
The union argued that placing Tshefuta in charge of the fund without answering those questions weakened confidence in the institution.
Demand for appointment to be withdrawn
It demanded that the appointment be “withdrawn pending a lawful and transparent process”.
The UIF is funded through compulsory monthly contributions from employers and employees. It pays benefits to workers who lose their jobs, go on maternity leave, become ill, adopt children, or die. It also funds projects through its Labour Activation Programme.
The fund handles tens of billions of rand annually and remains one of the country’s most important worker-funded social security institutions.
In its letter, the PSCU said the appointment also raised concerns about Tshefuta’s “multiple leadership positions”.
The union said those roles could create “conflicts of interest” and asked Meth to explain what safeguards had been put in place to protect the UIF.
It argued that the minister could not allow the appointment to stand while questions remained over whether the process had complied with the law.
The union said the appointment of an acting commissioner should not create uncertainty over accountability, governance or the independence of decisions taken at the fund.
The PSCU’s challenge places Meth under pressure to defend the legal basis of Tshefuta’s appointment, the process followed by the department and the measures taken to manage possible conflicts.
Molisane’s announcement presented the appointment as part of the department’s efforts to improve the UIF’s performance.
She said Tshefuta was expected to “lead and strengthen” the fund and ensure that it delivered “meaningful and efficient services”.
She also said his appointment was aimed at “driving forward key reforms” and “strengthening governance”.
The department said it wanted the UIF to deliver on its mandate with “excellence and accountability”.
Assurances insufficient
The PSCU, however, said those assurances were not enough without a proper explanation of the lawfulness of the appointment.
The union said the minister had to deal with the fact that the UIF is “funded by employees and employers” and therefore requires a higher level of accountability in its leadership decisions.
It said the department also had to confront the question of whether Tshefuta’s “multiple leadership positions” were compatible with the responsibilities of acting UIF commissioner.
The PSCU said Meth should withdraw the appointment and ensure that any replacement process is lawful, transparent and free of conflicts.
ALSO READ: Cosatu warns of UIF’s ‘state capture 2.0’
- The Public Service and Commercial Union (PSCU) of South Africa has demanded Labour Minister Nomakhosazana Meth withdraw Thulani Tshefuta’s appointment as acting commissioner of the Unemployment Insurance Fund (UIF) due to legal, governance, and conflict-of-interest concerns.
- The union questions whether Tshefuta’s appointment complies with Section 43 of the Unemployment Insurance Act and public service appointment rules, emphasizing the UIF’s status as a contribution-based insurance fund funded by employers and employees.
- PSCU also raises concerns over Tshefuta’s multiple leadership roles, suggesting potential conflicts of interest without sufficient safeguards.
- The UIF handles tens of billions of rand annually and provides critical social security benefits, making lawful, transparent, and accountable leadership essential.
- Despite the Department of Employment and Labour's assurances that Tshefuta’s appointment would strengthen governance and improve UIF services, the union insists the appointment be withdrawn pending a transparent and lawful process.
Molisane said the department “welcomes the appointment” of
Molisane said the department looked forward to
But the PSCU said
For that reason, the PSCU said, any appointment to lead the fund had to be lawful, transparent and properly explained to those whose money sustains it.
It demanded that the appointment be “withdrawn pending a lawful and transparent process”.
In its letter, the PSCU said the appointment also raised concerns about
It argued that the minister could not allow the appointment to stand while questions remained over whether the process had complied with the law.
Molisane’s announcement presented the appointment as part of the department’s efforts to improve the UIF’s performance.
It said the department also had to confront the question of whether
ALSO READ: Cosatu warns of UIF's 'state capture 2.0'
