Thousands of unemployed people pictured outside the Department of Labour between corner of Kings Road and Crompton in Pinetown during March 2020 to register for their UIF. Picture: Bongani Mbatha/Independent Newspapers (Archives)
For over five years, the Unemployment Insurance Fund (UIF) and the Compensation Fund have found themselves at the centre of relentless criticism, with little indication that change is on the horizon.
The multitude of failures they have faced in internal auditing, paired with scathing reports from the Auditor General, have raised serious concerns about accountability and transparency in these crucial financial entities.
Shockingly, during the 2023 audit, neither fund was able to present a coherent set of figures for review, underscoring a profound scorn for public money and an alarming negligence towards the very employees and retirees these funds are meant to safeguard.
While the ramifications of these failures are dire, the response from many trade unions has been disappointingly muted. There is an urgent need for voices to emerge, champions willing to advocate for the rights of South Africa’s workers.
As the public stands in the long shadows cast by these entities, the need for activism is greater than ever. For the last two months, the situation has worsened dramatically, with the UIF’s online filing system collapsing, and its operational capacity severely impaired as it grapples with a complex legal dispute that remains unresolved. The workers of this country are caught in a tumultuous limbo.
Adding to this crisis, UIF Commissioner Maruping has been suspended amidst ongoing investigations stemming from a proposed R5 billion heist that has shocked the nation.
Despite the severity of the implications, no interim commissioner has been appointed while the search for a permanent replacement continues. The absence of leadership renders this already crippled institution even more dysfunctional. Members of the Portfolio Committee on Employment and Labour and Minister Thulas Nxesi have offered no clarity or communication to the public regarding who will fill this vital role.
This lack of urgency is alarming. It took a year for the department to act on the corruption allegations that surfaced around the heist, during which the then-Minister attempted to deflect responsibility before he was ultimately compelled to suspend both the Director General and the Commissioner of the UIF.
While the Director General resigned, assuming complete blame, questions linger around the involvement of other officials and ministers in this shocking betrayal of public trust.
With court cases and investigations continuing, the stench surrounding this entire debacle remains unbearable. The UIF, in its current form, is unable to operate effectively, leaving hundreds of thousands of vulnerable South Africans scrambling for assistance.
The silence from the Department has been deafening, and attempts by the public to seek assistance in person have resulted in long queues with insufficient resources to meet their needs.
Desperate individuals are left to fend for themselves, often feeling neglected by a system designed to protect them. Reports of perilously high stress levels, even thoughts of suicide among those affected, are becoming all too common. The cries for help from mothers on maternity leave, the recently retrenched, and retirees echo through the corridors of bureaucracy but fall on deaf ears. They are not requesting charity; they simply seek access to their hard-earned funds, which have been mishandled through corruption and inefficiency.
It is essential that action is taken immediately. Minister Thulas Meth must appoint an acting commissioner without further delay and consider transferring the administration of the UIF to a more capable body, whether it be the South African Revenue Service or a private firm.
As the queue of individuals seeking help grows longer, failure to act will only lead to greater despair. The political figures embroiled in this scandal must be held accountable; they should not just be dismissed but compelled to apologise to the workers of South Africa for their negligence.
It is high time that the issues facing the UIF and Compensation Fund are addressed with the seriousness and urgency they warrant. The time for silence has passed – the workers of South Africa are in need, and they deserve nothing less than justice, transparency, and immediate action.
* Michael Bagraim is a veteran labour lawyer.
** The views expressed here are not necessarily those of Independent Media.
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