Sunday Independent reports that the Auditor-General of SA (AG) recently delivered a devastating virtual briefing to the Standing Committee on Public Accounts (Scopa), exposing the disastrous financial management and governance inside the Compensation Fund (CF) and the Unemployment Insurance Fund (UIF).
The meeting, chaired by Rise Mzansi’s Songezo Zibi, revealed systemic failures, rampant fraud, and a culture of non-accountability that have plagued these entities for over a decade. The CF, which provides compensation to workers injured or disabled in the line of duty, has received a disclaimer of audit opinion for 12 consecutive years. This unprecedented failure underscores a complete breakdown in financial oversight, governance, and internal controls. Meanwhile, the UIF, a lifeline for millions of unemployed South Africans, faces similar challenges, with its 2023/24 audit still underway but already showing signs of significant irregularities. Bulelwa Sikweyiya, senior AG audit manager, delivered a scathing assessment of the CF’s financial management. The CF’s investment strategy also came under heavy scrutiny. Funds were channelled through the Public Investment Corporation (PIC) into unlisted entities, many of which failed, resulting in significant losses. The CF operates under the Department of Employment and Labour, with an acting commissioner who has been in the role for two years. “The current structure is ineffective,” Zamahlangu Mditshwa, senior AG audit manager, pointed out, recommending the establishment of a board to strengthen accountability. The Scopa meeting highlighted the urgent need for decisive leadership and structural reforms within the CF and UIF. As Zibi put it: “This situation is a disaster.”
- Read the full original of the report in the above regard by Sizwe Dlamini at Sunday Independent
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