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The Auditor-General of South Africa has issued a disclaimer of opinion against the Compensation Fund – this is the worst possible finding the AG could make and follows four years of qualified audits. 

The findings by the Auditor General confirm that the fund is in a state of chaos.

The situation is currently so problematic that the Fund cannot reconcile its revenue and debtors. Furthermore, the entity does not have a process in place to ensure that employers are properly registered with the Fund.

The entity racked up almost R139 million in irregular expenditure and over R15 million in fruitless and wasteful expenditure.

The auditor general also noted material under spending to the tune of R3.461 billion in providing compensation and paying for medical services - denying workers of access to fair compensation for injuries experienced at the work place.

In the midst of this, board members were allowed to take home over R1,5 million in fees, up from R577 000 previous year. Non-executive board members, also earned R1 009 000 in fees.

In the Auditor-General’s assessment of the functioning of the entity, it was found that management did not take corrective action to address previously reported root causes to problems identified last year.

For some time, the DA has called for urgent intervention at the fund.

Financial maladministration at the fund does a tremendous disservice to sick and injured workers whom deserve the have proper access to the cover the law has provided.

The DA will, again, urge the Minister of Labour, Mildred Oliphant, to take the necessary action and ensure that financial stability at the fund is implemented. It must be placed under administration urgently.

Issued by the DA