Today's Labour News

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UIFMoneyweb reports that officials, led by Deputy Auditor-General Tsakani Ratsela, told MPs last week that the Unemployment Insurance Fund (UIF) was running out of money, due to having to pay out Covid-19 Temporary Employer-Employee Relief Scheme (Ters) benefits.  

In a report released last month, the Auditor-General outlined that Ters payments had been made to dead people, children, prisoners as well as foreigners who had not made contributions to the fund for 12 months.  This resulted in billions of rands being wasted.  Now news has surfaced that the fund will struggle to fulfil its mandate in future as the Covid-19-induced economic crisis deepens.  Fund spokesperson Makhosonke Buthelezi said he could not yet confirm how the UIF would prevent its funds from being depleted in the near future.  “The fund’s actuaries have been tasked to make an analysis of the financial health of the UIF and once done, they will make a presentation to Nedlac social partners.  And from there, various options of Ters funding will be discussed,” Buthelezi said.  On the flipside, the UIF has recovered R3.2 billion in Ters funds which were paid in error.  Buthelezi also said that investigations were continuing, and some applicants who defrauded the fund had already been arrested.

  • Read the full original of the report in the above regard by Melitta Ngalonkulu at Moneyweb

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