Employment and Labour on Minister Nomakhosazana Meth presentation to SCOPA on interventions at UIF and CF

The Minister of the Department of Employment and Labour, Ms. Nomakhosazana Meth, attended the Standing Committee on Public Accounts (SCOPA) session on Wednesday, 5 March 2025, wherein the Department’s Funds, the Compensation Fund (CF) and Unemployment Insurance Fund (UIF) were invited to appear.

The Funds appeared before SCOPA, Chaired by Hon Songezo Zibi, for accounting on matters pertaining to their state of affairs, which has led to consistent poor audit outcomes for over 10 years . SCOPA is concerned about where these two entities are investing public funds, the late submission of Financial Statements, as well as challenges pertaining to their ICT systems.

In addition, Acting Unemployment Insurance Commissioner, Adv. Lucky Mkhonto outlined the ongoing work of Follow the Money project in verifying the COVID19 TERS payments made during the course of the pandemic period, explaining the enormous urgency and conditions under which the COVIDS19 TERS funds were distributed. Adv Mkhonto further emphasised the need to continue engaging the Public Investment Corporation (PIC) on the Turnaround and Value add initiatives for the unlisted portfolio.

Ms. Fakir expressed her commitment to resolving the challenges, which have been a snowball effect from the previous management, prior to her taking over as Acting CF Commissioner two years ago. She also outlined the consequence management strategy currently in place.

“We have the grit to solve the problem and we will not quit. We have charged and taken people through disciplinary processes. Just last week, we reclaimed R24m from fraudulent transactions. We have a dedicated project on internal controls,” said Ms Fakier.

Responding on the challenges faced by UIF, Ms Judith Kumbi explained that major UIF challenges started during COVID-19 when the UIF was put under pressure to relax some of the controls because of the devastating disease, and the urgency in which funds needed to be released to support struggling businesses.  Due to time constraints, the meeting with UIF could not be completed and would be rescheduled for a later date.

The Committee acknowledged the interventions highlighted by the Minister and applauded her on the restructuring of the CF and UIF, as this would ensure proper Governance.

“We welcome your commitment to turn the situation around and that you want to see changes as soon as possible, just like we do. We sympathise with you for having inherited so many challenges, and welcome your commitment to resolve the challenges,” said Committee Member, Hon Mgijima Jim Skosana.

On responding to the questions and concerns raised, Minister Meth assured the Committee on her commitment to turn the situation around. The Minister also outlined the comprehensive and sustainable interventions of the Department, aimed at addressing all the challenges associated with the two entities.

“I remain optimistic. I will push for a clean audit. The law requires us to open criminal cases even when people are no longer with the department. Disciplinary and criminal cases must run their course,” said Minister Meth.

SCOPA Chairperson, Hon Songezo Zibi thanked the Minister and her delegation for appearing before the Committee and has requested the Department to submit a turn-around strategy within 3 months and prepare to return for a follow-up session after 6 months.

Media inquiries : 
Ms. Thobeka Magcai, Ministry Spokesperson
Email: Thobeka.Magcai@Labour.gov.za| 
Mobile: 072 737 2205

Or

Mr. Teboho Thejane , Departmental Spokesperson
Email: Teboho.Thejane@labour.gov.za 
Mobile: 082 697 0694 

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