Three labour officials of the Eastern Cape Provincial Office were suspended earlier today for their involvement in fraudulent activities resulting in the Unemployment Insurance Fund (UIF) swindled for R377, 671, 52.
Speaking at a media briefing in Durban, KwaZulu-Natal today, the Director-General of Labour, Mr Nkosinathi Nhleko said, "following a whistle blowing case, an investigation took place and information gathered has revealed a prima facie evidence that fraudulent UIF applications were being processed by corrupt officials."
He said, "duplicate identity documents, duplicate banking details where a bank account number is used by more than one person, fictitious claims by ghost employees and fictitious employers are some of the risks that the fund faces in dealing with fraudulent claims."
"This proves that the detection mechanisms of the fund are indeed working. The Fund has already implemented various other mechanisms to stamp out and curb fraud. These include massive fraud awareness campaigns undertaken on a yearly basis, maintaining a Fraud Hotline account, fax line and a toll free number where all internal and external stakeholders can report all kinds of suspected fraudulent activities.
Individuals who want to remain anonymous are also encouraged to make use of these facilities. Sophisticated IT systems have also been put in place to detect and facilitate investigations," Nhleko said.
Departmental investigators have as such been registered under fraud examiners of South Africa and have got packages to assist in tracking and tracing perpetrators.
Nhleko reaffirmed the departments zero tolerance approach to eradicating fraud saying that, "Healthy working relations with all relevant stakeholders have been established and processes are already underway to sign memorandums of understanding aimed at collectively fighting this scourge.
The department will act quickly and swiftly to ensure that all those that attempt to criminally exploit the state resources will face the full might of the law."The case at Eastern Cape has been handed over to the South African Police Service (SAPS) for investigation.
Alleged fraudulent activities can be reported to the departments Toll Free Fraud Hotline on 0800 601 148, Fax line on 012 337 1985 or to the fraud@uif.gov.za .
Enquiries:
Page Boikanyo
Cell: 082 809 3195
Provincial Communications
Cell: 0845076743
Source: Department of Labour
