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Department traces R228-million companies fraudulently claimed from UIF for Covid

11 June 2021 4:00 PM
Tags:
Thulas Nxesi
Department of Labour and employment
Occupational Health and Safety Act

Many workers could not receive Unemployment Insurance Fund aid as employers fraudulently pocketed contributions.

Labour and Employment minister Thulas Nxesi says his department has managed to trace R228-million that was fraudulently claimed by companies from the UIF’s Temporary Employer/Employee Relief Scheme (Ters) established amid the COVID-19 pandemic.

Nxesi addressed a webinar earlier today detailing his department's progress with COVID-19 measures since April 2020.

South Africa’s economy shrank by 7% and shed a million jobs during the course of the pandemic, but Nxesi was confident the UIF’s Temporary Employer/Employee Relief Scheme (Ters) brought some comfort.

The UIF has made almost R60 billion worth of payments since April last year as part of government’s COVID-19 relief effort.

As at 31 March 2021, payments were made to 267,000 employers and to 5.4 million individual employees at a cost of R58.7 billion, providing support to laid-off workers, their families and communities across the country.”

Thulas Nxesi, Labour and Employment minister

Workers were also impacted when they were not able to claim UIF because their employers had simply pocketed the money for themselves.

John Perlman speaks to Eyewitness News reporter, Nkosikhona Duma, who covered the story.

Cosatu general secretary, Mr [Bheki Ntshalintshali] was saying that it was very disappointing that the pandemic actually exposed government's incapacity on many fronts and one of those is that government was not strict enough on employers who would claim UIF money and all these other contributions from workers, then not contribute to the UIF and so what happened was that when it was time to claim from Ters fund... many employers could not claim because they were not contributing as they were supposed to.

Nkosikhona Duma, Eyewitness News reporter

Listen to the full interview below...




11 June 2021 4:00 PM
Tags:
Thulas Nxesi
Department of Labour and employment
Occupational Health and Safety Act

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