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Employment and Labour welcomes SIU probe

8 Apr 2021

The Department of Employment and Labour has welcomed the investigation into allegations of corruption and maladministration by the Special Investigation Unit following the signing of the proclamation authorizing the probe by President Cyril Ramaphosa.

The Director-General of the Department Thobile Lamati said: “We welcome the probe into allegations of possible corruption and maladministration into the Unemployment Insurance Funds special Covid-19 TERS benefits.

“We have been working with the SIU in any event when the first probe was launched and we are just as anxious to get to the bottom of the allegations and to gain sight to all the facts and which would hopefully bring a close to this chapter. Over the last year, the UIF has had a major impact to the lives of workers in this country, distributing an unprecedented over R60-billion to help workers cope with the lockdown blues and we wouldn’t want to have this great work sullied by allegations of corruption and maladministration.

“If any of our officials are found to have been part of the alleged corruption, we will make sure that they face disciplinary action and that the law enforcement agencies prosecute them. We cannot tolerate any corruption and we applaud the President for taking this step in fighting corruption,” he said.

The UIF had on its own initiative employed the expertise of forensic auditors to launch its own investigation in a “Follow the Money” campaign. This campaign is following on every cent paid to ensure that those who received the monies and were not entitled pay back and for the companies that swindled their workers to pay back the money to the UIF. So far, over R2-billion has been returned to the coffers of the Fund.

In terms of Proclamation R8 of 2021, the SIU is authorized to investigate allegations of corruption and maladministration in the affairs of the Unemployment Insurance Fund (UIF).  The investigation will focus squarely on the payments of COVID-19 Temporary Employee/Employer Relief Scheme (TERS) benefits to people who were not entitled to receive such payments or submitted false, irregular, invalid or defective application to the UIF, including the causes of such maladministration. The investigation will look at payments that dates back to 1 March 2020 and 1 April 2021 or that took place after 01 April but relevant to, connected with or involve same people, entities or contracts being investigated.

The SIU has already been involved in investigation of TERS payments under secondment agreement with the Department of Employment and Labour, which had since expired. The investigation uncovered a number of irregularities in the TERS payments, which prompted SIU to apply for a proclamation.

Media enquiries:
Musa Zondi
Acting Departmental Spokesperson
Cell: 067 426 4190

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