Business Unity SA has called for the Unemployment Insurance Fund to be put under immediate administration due to"systemic dysfunction", corruption, and ineptitude threatening workers' benefit.
The UIF is a social security fund raised from a payroll tax that provides unemployment and maternity benefits to workers. It is clear the current management within the UIF is unwilling or unable to execute their mandate and has embarked on ill-considered systems, such as the eCompliance platform, which have failed and introduced risk in the business landscape, both for companies seeking assurance about the compliance of their providers and for the protection of workers.
The eCompliance system was introduced in January 2021 to digitise manual processes but has been riddled with problems. BUSA says that its appeals for intervention by the government had gone unheard, and several letters to Minister of Labour and Employment Thulas Nxesi had not received a positive response.
Nxesi informed the Speaker of Parliament earlier this week that the UIF could not complete its annual financial statements for the second year running. He said the 2021/22 annual financials would be submitted to Parliament by the end of October. The audit for 2022/23 had yet to begin, and the final accounts would only be tabled by June 2024. In times of uncertainty you need journalism you can trust.
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