30 October 2006
The Minister of Labour, Membathisi Mdladlana, has appointed Shadrack Mkhonto
as the new Compensation Fund Commissioner with effect from 1 November. Mkhonto
takes over from the acting Commissioner Phineas Mothiba.
The Compensation Fund has been in crisis ever since the suspension and
eventual dismissal of Ms Bongiwe Magojo, more than 18 months ago. Two acting
Commissioners have been at the Fund before this permanent appointment. These
include current director of the Commission for Conciliation, Mediation and
Arbitration (CCMA), Nerine Khan.
Mkhonto will be expected to turn the Compensation Fund around in terms of
the strategy that has already been formulated. The strategy rests on four
pillars, namely:
* streamlining and automating business processes to improve operational
efficiency
* appropriately raising assessments, timeously collecting all funds due, whilst
simultaneously increasing our registered employers
* adopting a zero-tolerance, pro-active and reactive approach to all areas of
risk
* appropriately and adequately structuring the Fund, capacitating, skilling and
structuring the staff for maximum service delivery and career-pathing.
Mkhonto successfully turned the Unemployment Insurance Fund (UIF) around
from a being a public entity tottering on the brink of collapse, facing
bankruptcy in 2001. By implementing stringent financial management coupled with
the change in law on contributions, the UIF was turned around and is now
sitting on reserves in excess of R10 billion.
Enquiries:
Mokgadi Pela
Cell: 082 808 2168
Website: http://www.labour.gov.za
Issued by: Department of Labour
30 October 2006
