Minister of Employment and Labour, Nomakhosazana Meth, has noted the conviction of six individuals who pleaded guilty to orchestrating a fraudulent scheme to siphon Compensation Fund monies into their personal bank accounts through fictitious medical providers. This six (6) is part of nine (9) individuals who were arrested late last year as part of an ongoing investigation. Three (3) out of the nine (9) individuals are proceeding to trial, and the six (6) will be sentenced in November 2025.
“This case should be a lesson to all those who orchestrate fraudulent schemes to siphon monies from the Compensation Fund that the Department, with the assistance of the law enforcement agencies, will ensure that the individuals implicated in any of the ongoing investigations in and outside the Compensation Fund will face the might of the law,” said Minister Meth.
The Compensation Fund exists to provide financial and medical support to workers who sustain occupational injuries or diseases in the course of their employment. Any attempt to defraud the Compensation Fund is not only criminal but a direct assault on the rights of vulnerable workers and their families who depend on it for their livelihood and dignity.
We commend our Anti-Corruption and Integrity Management team, law enforcement agencies, prosecutors, and the judiciary for ensuring that justice has been served in this matter. Their work sends a strong and clear message that fraud and corruption within state funds will not be tolerated.
The Department has since intensified measures to strengthen governance, tighten internal controls, and enhance digital verification systems within the Compensation Fund. This includes:
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Enhanced monitoring and auditing systems to track irregular transactions.
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Collaboration with medical regulatory bodies to validate providers.
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Introduction of advanced digital platforms to reduce human interference in claims processing.
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Partnership with law enforcement to fast-track investigations and prosecutions where fraud is suspected.
As the Department, we remain steadfast in restoring public trust and ensuring that every rand in the Compensation Fund is used exclusively for the benefit of workers who have suffered occupational injuries and diseases.
The Minister assures the public, workers, and employers that this conviction is not the end, but a continuation of the broader effort to clean up and safeguard all labour-related social protection institutions.
Enquiries:
Ms Thobeka Magcai
Cell: 072 737 2205
E-mail: Thobeka.Magcai@labour.gov.za
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