The days when the Compensation Fund is viewed as a sitting duck waiting to be milked dry were over, warned Department of Labour Director-General Nkosinathi Nhleko at a fund’s staff meeting attended by its management in Pretoria today (September 5).
Nhleko said that there was a perception that the Compensation Fund was a charity that was waiting to be ripped-off. He said the fund was changing tactics and was tightening screws to deal with corruption.
The Compensation Fund was currently applying a regular monthly review system that thoroughly monitors payments to detect instances of fraud. The move was starting to yield results. Currently, there is a case at the Specialised Commercial Crimes Court in Pretoria in which accused are appearing for alleged money laundering and defrauding the Fund of more than R3-million. The Fund is investigating a number of suspicious transactions/claims and hopes to make a breakthrough soon and engage with prosecuting authorities for more arrests.
The Compensation Fund is a public entity of the Department of Labour. The Fund provides for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, or for death resulting from such injuries or diseases; and to provide for matters connected therewith.
Recently the Compensation Fund announced it has posted a surplus of R3, 6 billion in the past financial year ended in March 2011. The Fund raised R5, 3 billion assessment revenue as compared to R4-billion in the previous financial year. The Compensation Fund’s assets grew from R24, 6 billion during the 2009/10 financial year to R28, 2 billion in this financial year. The Fund employs more than 600 people.
Meanwhile the Compensation Fund was on the throes of a restructuring which would see it decentralising its operations to provinces. Nhleko reassured staff that the organisational review “does not have ulterior motives”, but to ensure that all South Africans enjoy access to Compensation Fund services. Nhleko said he hoped the process would be open and transparent and would be conducted in consultation with the unions.
“The Fund will soon announce timeframes on the unfolding process. A new migration plan is currently being negotiated with organised labour,” Nhleko said.
The new structure has been approved by both Minister of Labour Mildred Oliphant and Public Service and Administration.
Nhleko sought to allay fears of staff saying, “Lets not allow rumours to devour us”.
Compensation Fund Commissioner Shadrack Mkhonto said the way the process would be conducted was that all staff including contract workers would be accommodated in some form in the new structure. He said only key and strategic positions where the Fund lacks expertise would be advertised. He said restructuring in Fund was not new.
Mkhonto said in the past the Department of Labour had successfully embarked on a process to amalgamate the various ‘Compensation Fund’s’ including those of former Transkei, Bophuthatswana, Venda and Ciskei (TBVC states) into a single fund.
Mkhonto committed to engage with the unions to complete the restructuring framework. The way forward is to engage the unions on the implementation process,” he said.
For enquiries contact:
Shadrack Mkhonto (Compensation Fund Commissioner)
Cell: 082 568 3151
