Minister Nxesi confirms suspension of UIF commissioner and senior management
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Employment and labour minister Thulas Nxesi on Wednesday confirmed that Unemployment Insurance Fund (UIF) commissioner Teboho Maruping, along with senior management of the fund have been suspended.
The suspensions come after the release of the auditor-general’s report, which showed major issues and irregularities in the Temporary Employer/Employee Relief Scheme (Ters), funded by the UIF.
Nxesi said he placed Maruping on precautionary suspension on Wednesday morning in light of the auditor-general’s report which showed there were serious risks and violations.
He said the director-general of the department of employment and labour had also suspended the UIF’s CFO, COO and head of the supply chain.
“These moves allow for the Special Investigating Unit to conclude its forensic investigation completely unfettered,” Nxesi said.
“I assure you that I will not rest until every payment is accounted for, and every wrongdoer made to account.”
The payment of Ters has been hit by a number of issues resulting in backlogs.
Auditor-general Kimi Makwetu highlighted problems with overpayments, underpayments, the invalid rejection of beneficiaries, fraud and double-dipping.
Ters was initially envisaged to cover three months, from April to June, and was established as a key part of the government’s R500bn economic and social relief package to help those affected by the lockdown.
It was announced in July that the benefit would be extended for six weeks until August 15. However, the opening of applications was delayed because a government directive had not been signed and published at the time.
On Wednesday Nxesi said that the UIF had disbursed R41.6bn to 9.5-million workers to date, representing 822,000 employers.
“These benefits have supported millions of laid-off workers, their families, and injected cash into local economies,” he said.
It is expected that the Ters benefit will be extended to September 15.
Nxesi said the recommendation was made at the National Economic Development and Labour Council, because some companies had not yet opened, despite the easing of the lockdown.
“There was an agreement that this should be extended, however, I needed an assurance from the DG [director-general] and the actuaries if we are going to be able to afford [this] and we were given an assurance that we can afford these,” he said.
The minister said there were processes that still needed to be followed and the board of the UIF needed to be consulted on the proposal.
quintalg@businesslive.co.za (mailto://quintalg@businesslive.co.za)
The suspensions come after the release of the auditor-general’s report, which showed major issues and irregularities in the Temporary Employer/Employee Relief Scheme (Ters), funded by the UIF.
Nxesi said he placed Maruping on precautionary suspension on Wednesday morning in light of the auditor-general’s report which showed there were serious risks and violations.
He said the director-general of the department of employment and labour had also suspended the UIF’s CFO, COO and head of the supply chain.
“These moves allow for the Special Investigating Unit to conclude its forensic investigation completely unfettered,” Nxesi said.
“I assure you that I will not rest until every payment is accounted for, and every wrongdoer made to account.”
The payment of Ters has been hit by a number of issues resulting in backlogs.
Auditor-general Kimi Makwetu highlighted problems with overpayments, underpayments, the invalid rejection of beneficiaries, fraud and double-dipping.
Ters was initially envisaged to cover three months, from April to June, and was established as a key part of the government’s R500bn economic and social relief package to help those affected by the lockdown.
It was announced in July that the benefit would be extended for six weeks until August 15. However, the opening of applications was delayed because a government directive had not been signed and published at the time.
On Wednesday Nxesi said that the UIF had disbursed R41.6bn to 9.5-million workers to date, representing 822,000 employers.
“These benefits have supported millions of laid-off workers, their families, and injected cash into local economies,” he said.
It is expected that the Ters benefit will be extended to September 15.
Nxesi said the recommendation was made at the National Economic Development and Labour Council, because some companies had not yet opened, despite the easing of the lockdown.
“There was an agreement that this should be extended, however, I needed an assurance from the DG [director-general] and the actuaries if we are going to be able to afford [this] and we were given an assurance that we can afford these,” he said.
The minister said there were processes that still needed to be followed and the board of the UIF needed to be consulted on the proposal.
quintalg@businesslive.co.za (mailto://quintalg@businesslive.co.za)