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The Unemployment Insurance Fund (UIF) has since March 2020 to date paid out R2,1 billion to 457 546 workers in the North West province as part of its Covid-19 Temporary Employer-Employee Relief Scheme (Covid-19 TERS).

Furthermore, the UIF also paid out a separate amount of R601 million to 139 629 workers and their beneficiaries as normal benefits related to either unemployment, maternity, illness or death over the 2022/2023 financial year.

The aforementioned details were revealed today, 27 June 2023 during a media briefing hosted by the UIF at the Rio Hotel Casino and Convention Resort in Klerksdorp.

Speaking at the briefing, UIF Provincial Support Director, Mr Allan Ragavaloo, said the R2,1 billion disbursed to workers in the North West Province arose from 6 963 Covid-19 TERS applications the UIF received from employers. 

The top 10 sectors that received the lion’s share of the R2,1 billion are Mining, Personal Services, Trade, Construction, Banking, Professional Services, Iron, Agriculture, Educational, and Charities. To date, said Ragavaloo, R64 billion was paid out to at least 5 million workers nationally, through Covid-19 TERS.

Mr Smiso Nkosi, a Manager in the UIF Commissioner’s office, told journalists that Forensic Auditors of the UIF are continuing to audit companies in the province as well as around the country to ensure that the correct amounts of Covid-19 TERS monies were paid over to workers at the right time. 

Thus far said Nkosi, R17,5 billion from the R64 billion paid to date through Covid-19 TERS was audited and verified as correct payments. However, the audits also discovered instances of fraud, for example where employers applied for ghost employees, applications with inflated salaries, applications for terminated employees and applications by companies that were essential services who did not qualify because they were permitted to operate during the Covid-19 lockdowns.

Nkosi said measures are being implemented to deal with employers who refused to cooperate with “follow the money” auditors. These include:

•        Referral to the Special Investigating Unit and Directorate for Priority  Crime Investigation (HAWKS) for criminal investigation;

•        Refunding of all Covid-19 TERS funds;

•        Blocking employers from the UIF’s service offerings; and

•        Blacklisting employers from doing business with the UIF.

 “The Asset Forfeiture Unit of the National Prosecuting Authority has been helping us to attach and sell off assets that are proceeds of crime, to recover money that was stolen from the UIF,” said Nkosi.

Bernice Matlhako from the UIF’s Risk and Fraud Unit in North West province revealed that more than 20 suspects had been arrested through joint investigations for Covid-19 TERS-related fraud. Matlhako said the matters are all still before the courts.  

According to Matlhako, the UIF is taking disciplinary action against officials who are implicated in fraud cases as well as those who are alleged to be soliciting bribes from clients to expedite claims at labour centres in the province. To date, she said, two officials were dismissed, while another two are on suspension. A further five officials are currently undergoing disciplinary hearings. “We have a no-tolerance approach when it comes to fraud and corruption at the UIF and this is evident in how we deal with such matters,” stressed Matlhako.

Clients or members of the public can report any corrupt activities or fraud on the UIF Fraud Hotline: 0800 601 148 or to the Department of Employment & Labour hotline: 0860 666 883.

The UIF is an entity of the Department of Employment and Labour, mandated to provide short-term financial relief benefits to qualifying and contributing workers and their beneficiaries.

Issued by Department of Employment and Labour