The Unemployment Insurance Fund [UIF] has refused to name and shame companies which defrauded it of millions of rand in Temporary Employer/Employee Relief Scheme [Ters].
The fund told parliament’s public finance watchdog, the standing committee on public accounts [Scopa] on Tuesday that it is acting on legal advice not to share the details of companies that submitted illegal claims.
The scheme paid out R61bn over the past two years to more than 250,000 companies for about 4.7-million employees.
UIF commissioner Teboho Maruping said it employed six auditing companies to confirm in these companies if indeed the money was transferred to the rightful owners.
He said R14bn was confirmed as correctly paid to deserving employees. As a result of this exercise the fund had R3.2bn paid back into its accounts by the auditors, he said.
“Some of thepayments, I assume were triggered by the fraud cases that were in the media and people were arrested and some who were convicted.”
The Special Investigating Unit (SIU) has been investigating the undue payments with a focus on payments that were made to government officials, the National Student Financial Aid Scheme, prisoners and the deceased.
Maruping said the unit has been able to secure R42m in terms of acknowledgement of debt and R33m of this amount has been paid back to the SIU.
He said the scheme remained vulnerable and as of August 23, it had about R230m exposed to potential fraud. The National Prosecuting Authority's Asset Forfeiture Unit was able to preserve R133m and R123m of the R133m had already been paid back to the UIF, he said.
Ten cases involving 34 accused and seven companies were before the courts.
MPs had previously asked about naming and shaming the implicated companies.
UIF director for legal services, Lucky Mkhonto, said they had sought legal advice about that and the legal opinion said the memorandum of agreement (MOA) signed with those companies did not provide for naming and shaming them.
UIF won't 'name and shame' companies that defrauded Ters scheme
Image: 123RF/Olivier Le Moal
The Unemployment Insurance Fund [UIF] has refused to name and shame companies which defrauded it of millions of rand in Temporary Employer/Employee Relief Scheme [Ters].
The fund told parliament’s public finance watchdog, the standing committee on public accounts [Scopa] on Tuesday that it is acting on legal advice not to share the details of companies that submitted illegal claims.
The scheme paid out R61bn over the past two years to more than 250,000 companies for about 4.7-million employees.
UIF commissioner Teboho Maruping said it employed six auditing companies to confirm in these companies if indeed the money was transferred to the rightful owners.
He said R14bn was confirmed as correctly paid to deserving employees. As a result of this exercise the fund had R3.2bn paid back into its accounts by the auditors, he said.
“Some of thepayments, I assume were triggered by the fraud cases that were in the media and people were arrested and some who were convicted.”
The Special Investigating Unit (SIU) has been investigating the undue payments with a focus on payments that were made to government officials, the National Student Financial Aid Scheme, prisoners and the deceased.
Maruping said the unit has been able to secure R42m in terms of acknowledgement of debt and R33m of this amount has been paid back to the SIU.
He said the scheme remained vulnerable and as of August 23, it had about R230m exposed to potential fraud. The National Prosecuting Authority's Asset Forfeiture Unit was able to preserve R133m and R123m of the R133m had already been paid back to the UIF, he said.
Ten cases involving 34 accused and seven companies were before the courts.
MPs had previously asked about naming and shaming the implicated companies.
UIF director for legal services, Lucky Mkhonto, said they had sought legal advice about that and the legal opinion said the memorandum of agreement (MOA) signed with those companies did not provide for naming and shaming them.
Company directors charged for fraudulent Ters claims
Meanwhile, MPs expressed concern about light sanctions given to nine senior UIF officials who were charged with misconduct with regard to supply chain management processes. The officials, who included Maruping [CEO] and other members of the executive, were issued with written warnings and final written warnings. Maruping revealed that he got a final written warning and a one-month salary suspension.
Their charges related to the contravention of SCM processes in particular the interpretation of sole source against an emergency.
“We had procured a media company using a sole source during an emergency. The interpretation was we didn’t interpret the sole source correctly. That was the basis of the investigation,” he said.
Scopa chair Mkhuleko Hlengwa felt the officials got off lightly.
“I find the whole thing of written warnings to be one of the biggest jokes that exists in so far as consequence management is concerned. But I will give the benefit of doubt that due process was done."
He said the fact that the offences were investigated by the SIU meant they were serious.
“The issues that you have are grave, they are massive,” said Hlengwa.
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