Drastic measures required to deal with compensation fund mess, says Committee
The Standing Committee on Public Accounts (SCOPA) has requested the Department of Labour to take drastic measures in dealing with the financial mess at the Compensation Fund. This was said at the hearings held on the entity’s 2013/14 annual report and financials earlier today.
SCOPA noted the action by the Minister and Director-General of Labour to suspend the Chief Financial Officer of the Compensation Fund and the removal of top management including the Commissioner, Mr Shadrack Mkhonto, as of 01 June 2015. But the Committee believes that more stringent measures are necessary to ensure that the entity functions in a manner it is supposed to.
The Committee has requested the Director–General, Mr Thobile Lamati, to give SCOPA a breakdown of the fruitless and wasteful expenditure that amounted to just more than R12 million. The Committee has also requested a breakdown of the material losses through criminal conduct with the estimate case value of just over R26 million.
SCOPA has also asked Mr Lamati to provide the Committee, in a month’s time, with a detailed action plan that will detail how the Department of Labour aims to rectify the wrongs at the Compensation Fund.
SCOPA has also committed to conducting a review of the Compensation Fund in December to check progress made in an effort to assist the entity to return its financial management to the level that is required by law.
For media enquiries or interviews with the Chairperson, please contact:
Faith Kwaza
Tel: 021 403 8062
Cell: 081 377 0686
E-mail: fkwaza@parliament.gov.za
