5 September 2006
The Unemployment Insurance Fund (UIF) has aligned itself with the selected
few after the Auditor-General Shauket Fakie issued a clean audit report with
regard to audit qualifications. This comes up for the first time in many years
for the fund, whose main objective is to provide financial support to
unemployed workers.
Labour Minister Membathisi Mdladlana has already tabled the Annual Reports
of the Department of Labour, including Compensation Fund, UIF, and the National
Skills Fund in Parliament. Speaking after tabling the reports, the Minister
expressed his concern with a number of qualifications issued to his department.
He said he would spare no effort in ensuring that his department cleans up its
act.
âThe Unemployment Insurance Fund will serve as a source of inspiration to
the rest of my department in our efforts to achieve clean audit reports. The
fund has demonstrated to us all that with requisite financial skills our
steadfastness for clean records is achievable,â said Minister Mdladlana.
The report of the Auditor-General to parliament on the financial statements
of the UIF for the year ended 31 March 2006, in a sharp contrast to the past
reports where the Auditor-General issued a disclaimer of the audit opinion on
the Fundâs Financial Statements. At one stage the Auditor-General declared the
Fund technically insolvent.
âThe report of the 2005/06 financial year has clearly vindicated the
corrective measures that I undertook following the adverse report of the
2003/04 financial year. The appointment of the Chief Financial Officer and four
senior managers with requisite skills to deal effectively with issues of
financial management at the fund are among the steps that produced todayâs
excellent results,â added the Minister.
The Minister said the fund continued to perform exceptionally well with its
finances. âThe fund has moved from a surplus of R2,043 billion after reserving
in the 2004/05 financial year to now record a surplus of R3,868 billion in the
2005/06 thus representing an increase of 89,3%,â he said.
He concluded by revealing that the Fund which has now build an unprecedented
more than R14,7 billion in financial reserves has provided financial support to
589 000 beneficiaries to the tune of R2,9 billion.
Enquiries:
Kgomotso Sebetso
Cell: 073 2699870
Mokgadi Pela
Cell: 082 8082168
Issued by: Department of Labour
5 September 2006
