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ActionSA will be writing to the Minister of Employment and Labour, Nomakhosazana Meth, demanding urgent intervention in the rampant corruption and mismanagement plaguing the Compensation Fund and the Unemployment Insurance Fund (UIF). 

These funds exist to protect and support hard-working South Africans in times of need, yet they have been turned into slush funds for fraud and maladministration. The dignity of our nation’s workers is being systematically stripped away by those entrusted to safeguard their welfare.

This week, the Auditor-General of South Africa (AGSA) presented its audit findings on these two funds, responsible for a combined annual revenue of R46 billion, to the Standing Committee on Public Accounts (SCOPA). The findings can only be described as a horror show, revealing:

• A complete breakdown of internal controls
• Missing or non-existent supporting evidence for transactions
• Duplicate payments
• Fraudulent transactions enabled by the changing of bank account details
• Reckless investments in unlisted and failing start-up businesses
• A total lack of consequence management for corruption and mismanagement

Instead of ensuring financial security for injured or unemployed workers, these funds have become breeding grounds for mass looting and impunity. The very institutions meant to offer relief in times of hardship are now robbing workers of their dignity and their right to financial security.

The Compensation Fund, meant to assist workers injured on duty, has received 12 consecutive years of audit disclaimers—a staggering indictment that signals complete financial chaos. The Auditor-General does not have enough information to even form an opinion on its finances. Meanwhile, the UIF, which exists to support unemployed workers, has failed to submit its financial statements on time and has received qualified audit opinions for five straight years. Governance over these funds has completely collapsed, and ultimate responsibility lies with the Minister of Labour.

It is unacceptable that year after year, these failures are exposed, discussed, and then forgotten, while workers continue to suffer. The Minister of Labour cannot evade responsibility for this disaster. If she cannot fix this mess, she must go. The political leadership overseeing these funds must be held accountable, not just with words but with real consequences.

ActionSA will not stand by while South Africa’s workers are robbed in broad daylight. We will be writing to the Minister of Labour to demand urgent intervention. Furthermore, we call on the Auditor-General to exercise the full powers of the Public Audit Act, including issuing Certificates of Debt against those who have failed to take remedial action.

South Africans deserve a government that works for them, not against them. If the Minister and her department continue to fail workers, they must answer to Parliament and to the people.

Issued by ActionSA Member of Parliament Alan Beesley