The Unemployment Insurance Fund (UIF) Commissioner, Teboho Maruping, has instructed the auditors to knock on the doors of all businesses who received relief funds for their employees.
“I have instructed our ‘follow the money’ auditors to knock on the doors of all businesses who received funds for their employees,” he said.
To date, the fund has visited 97 companies to verify payments until all funds are fully accounted for.
This comes after the commissioner reflected on interventions staged to sustain workers affected by the July 2021 unrest.
The July unrest affected local, small and big businesses in Gauteng and KwaZulu-Natal provinces. Some of the businesses are still struggling to operating due to the heavy blow they have suffered when the unrest occurred.
The fund stepped in to help sustain the livelihoods of 6,644 workers who were negatively impacted by the unrest, with a total pay-out of R21.8 million.
The results of the “follow the money” project revealed that:
– Ninety-seven employers were audited and 74 of them were found to be still operating due to the UIF intervention and 76% of jobs were saved.
– One company is in the process of being liquidated.
– One is suspected of fraud due to non-availability of records.
– One is under ownership change.
A temporary financial relief scheme, Workers Affected by Unrest (WABU), was introduced to assist workers whose workplaces were closed due to the unrest, resulting in workers receiving partial remuneration or no pay at all.
The scheme was also created over and above the special Covid-19 TERS relief scheme. To date, the fund has disbursed R64 billion to workers from across the country.
UIF has received more than 2,000 WABU applications since August 2021, but only 165 have been approved. This happened after physical verification was done by labour inspectors of the Department of Employment and Labour.
“As an added fraud prevention measure, payments of WABU funds were made directly into verified worker bank accounts,” UIF said.
At the time, a directive was issued which instructed employers to apply on behalf of affected workers. The qualifying conditions were as follows:
– The employer will have to register or be registered with the UIF.
– The employer’s closure must be directly linked to the destruction, damage or looting of its workplace.
– The employer must provide details of the destruction, closure, or damage to, or looting of, its workplace and submit documentary proof of a report to the SAPS, with proof that a case has been opened by providing a case number, and if insured, proof of submission and acknowledgement of receipt of the insurance claim.
– The employer must confirm in writing or electronically that – he/she accepts the terms of the Scheme and any procedure document issued by the UIF.
– Submit any other information that the Minister or UIF Commissioner may require to assess the eligibility of the claim.
Furthermore, Maruping said the fund will continue to implement interventions to stimulate job creation, enhance employability of the unemployed, preserve jobs and improve operational efficiencies of companies in distress.
He added that the UIF’s assistance to workers since the Covid-19 pandemic was proof that the fund has the capacity to respond to crisis situations that affect workers and businesses.