UIF temporary relief fund suspended amid fraud risk investigation

UIF temporary relief fund suspended amid fraud risk investigation

- Business for South Africa (B4SA)has revealed that the Covid-19 temporary employer/employee relief fund has been put on hold over fraud risks

- The organisation also said there are over 800 000 employees who have been waiting for UIF benefits since April

- B4SA's Robert Legh expressed that the delay is unfair to all employees and employers who have made legitimate claims

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The Covid-19 temporary employer/employee relief scheme has been suspended, Business for South Africa (B4SA) has revealed.

The organisation reportedly said it has been informed that the Auditor-General is probing system integrity problems at the UIF. B4SA said it is concerned by the developments since payments have already been delayed.

The organisation further said that while it supports the mitigation of fraud risks, it is unhappy about the halting of all payments and the poor communication from the UIF's leadership.

Speaking to eNCA, Robert Legh from B4SA said there are 800 000 employees who have been waiting for UIF benefits since April.

Legh expressed that the delay is "grossly unfair" to all employees and employers with legitimate claims. Mzansi social media users have shared their views on the matter. Below are some of their reactions:

@mpho042012 wrote:

"These guys are so incompetent. Even after being aware of fraudsters for the past four months, we still have to suffer for their incompetence."

@Miss_Sibu said:

"Fraud risks or the money has been fraudulently stolen by the corruption gang?"

@mikewildthing commented:

"The money is gone. Boom! Gone. 15 Ferraris bought in lockdown and many other fancy cars."

@Themba58893586 added:

"Some people including some of their employees see this as their last opportunity to make a fortune and they will not let it go without a try. When society loses moral conscience there's little we can do. This is a real threat to our sovereignty."

About two months ago, the fund said that it will continue to accept and process Covid-19 claims for the months of April, May and June in line with the directive issued by Employment and Labour Minister Thulas Nxesi.

READ ALSO: Analysts believe concealed CR17 donations are ammunition for a faction

UIF temporary relief fund suspended amid fraud risk investigation

Employment and Labour Minister Thulas Nxesi. Image: Getty Images
Source: Getty Images

In other news, Briefly.co.za reported that South African businessman, Vuyisile Ndzeku, was caught red-handed for paying himself a R2.5 million SAA tender.

The former director of JM Aviation SA appeared before the state capture commission to respond to the allegations of corruption levelled against him. Ndzeku initially denied the accusations, including one suggesting that he paid himself R2.5 million.

However when state capture commission evidence leader, advocate Kate Hofmeyr, cornered him, the businessman was forced to change his story. One of the main allegations include a R1.5 billion ground-handling contract awarded to Swissport by Dudu Myeni's SAA in March 2016.

During this time, SAA had introduced the “30% set aside” policy, which called on companies that worked with SAA to ensure that 30% of that business benefited black-owned companies.

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Source: Briefly.co.za

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