Today's Labour News

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auditorgeneralBusinessLive reports that Auditor-General (AG) Kimi Makwetu has, once again, had to issue a disclaimer on the financial statements of the Compensation Fund, which provides compensation for workers injured or made ill at work.  

The finances of the fund have been in a disarray for several years with the AG’s report reflecting this again.  The report is included in the fund’s annual report for 2017-2018, which was tabled in Parliament this week.  For several years, the fund has been the target of complaints about tardy payments of claims to beneficiaries and medical practitioners alike, but Commissioner Vuyo Mafata has embarked on a turnaround strategy to restore the organisation to health.  However, the AG’s findings indicate that the strategy has not yet had an impact on financial management.  The fund, which generates income from levies imposed on employers, had revenue of R11.7bn for the year and incurred expenditure of R9.2bn.  The AG said he had been unable to obtain sufficient audit evidence for revenue and receivables, while management did not maintain proper accounting records and adequate controls over assessment of revenue and debtors.  Management did not implement adequate internal controls to maintain records of the benefits claimed and there was insufficient audit evidence for the R12bn provision for outstanding claims.  There were other shortcomings as well.


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