The UIF and CF said they were unable to recoup funds that they invested in unlisted companies. File picture: Independent Media.
The Unemployment Insurance Fund (UIF) and Compensation Fund (CF) are critical entities that urgently need to be saved from total collapse, says Parliament’s Select Committee on Economic Development and Trade.
The committee’s Chairperson Sonja Boshoff said that both entities were ravaged by instability and were unable to fill vacancies or adequately monitor the performance of existing employees.
This follows a meeting on Wednesday, where the UIF and CF briefed the Select Committee on their annual performance plans.
It also emerged that the two entities were unable to recoup funds that they had invested in unlisted companies, some of which were undergoing liquidation or business rescue.
“These two entities are most critical and foundational entities to the fabric of poor South Africans. They are instrumental in ensuring that South Africans are not submerged in destituteness and should not be allowed to collapse, and the select committee will not allow the current ruin to be further perpetuated,” Boshoff said.
“It is unacceptable that these two entities are unable to account for their wrong doings and for not adhering to the recommendations of the AG. Furthermore, the fact that investments are made with unlisted companies, resulting in millions of public funds being lost, is also of great concern to the committee.”
Boshoff said the lack of accountable systems, such as an updated payment system or applications processing systems, greatly affected performance and caused frustration for many deserving South Africans, with some abandoning their applications as a result.
“We will not allow further rot to set at both the CF and the UIF. We are challenged with the frequency with which we see the two labour entities because the committee is tasked with many other portfolios. Something must change at both, and it must change now,” Boshoff added.
Challenging times for UIF
The embattled unemployment fund saw its Commissioner Tebogo Marupeng being suspended in September for the second time.
Marupeng was suspended by Labour Minister Nomakhosazana Meth due to the alleged role he played in the conclusion of a R5 billion agreement reached between the UIF and Thuja Holdings, which was set aside by the Pretoria High Court in May.
Furthermore, the UIF’s uFiling system has experienced numerous delays, after a High Court interdict prevented it from implementing a new contract for support and maintenance services.
Meth said she was mindful of such challenges and assured that work was currently underway to remedy the situation.
Following this week's Select Committee briefing, the Minister assured that she would personally oversee the UIF and CF, going forward, as these entities were crucial to the well-being of South Africans.
IOL
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