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BL Premium reports that Department of Employment and Labour (DEL) Minister Thulas Nxesi has admitted that Covid-19 exposed the government’s “inadequate capacity” in the disbursement of relief funding meant to support workers and employers during the lockdown.
The Temporary Employer/Employee Relief Scheme (Ters) was established by Nxesi in March 2020 to cushion those in formal employment expected to lose their income due to the pandemic. Speaking during a webinar on Friday to share the DEL’s interventions aimed at mitigating the coronavirus’ effect on the labour market, Nxesi said the payment of Ters benefits by the Unemployment Insurance Fund (UIF) quickly became the “target” of fraud and corruption. “We were, therefore, grateful to the office of the auditor-general for their assistance in analysing systemic weaknesses, requiring strengthened controls, and to the SIU [Special Investigating Unit] for investigating possible fraud and corruption,” he said. The DEL announced last week that the officials suspended over alleged irregularities in the disbursement of Ters benefits were back at work after their suspensions were lifted. In September 2020 UIF commissioner Teboho Maruping, CFO Fezeka Puzi and COO Judith Kumbi were placed on suspension with full pay, pending a forensic investigation by the SIU. This followed a probe into Ters by the late auditor-general Kimi Makwetu, who uncovered alleged fraud and irregularities in the system, including the overpayments of more than R84m to 1,183 applicants and underpayments of R251m to 1,700 applicants, along with the invalid rejection of beneficiaries, fraud and double-dipping.
- Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (paywall access only)
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