By Thapelo Molefe
In a dire warning, the chairperson of the Select Committee on Economic Development and Trade, Sonja Boshoff, has sounded the alarm on the precarious state of the Unemployment Insurance Fund (UIF) and the Compensation Fund (CF).
She said the entities’ poor performance, reckless investments and lack of accountability have brought them to the verge of collapse.
The CF’s audit outcome for 2023/24 financial year was a disclaimer with findings, primarily due to inadequate ICT controls, lack of adequate record management systems, delays in investigating potential fraudulent claims, and a lack of organisational culture promoting integrity, transparency, performance and accountability.
Specifically, the Auditor-General highlighted issues with user access and security controls, verification controls for valid claims and beneficiary banking details.
The UIF was unable to submit its financial statements to the Auditor-General by 31 May in the past two financial years as required by Public Financial Management Act.
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