Nxesi announces suspension of UIF management: Probe launched

Nxesi announces suspension of UIF management: Probe launched

- Labour Minister Thulas Nxesi has announced that the Unemployment Insurance Fund's management has been suspended

- This announcement came shortly after the Auditor General's briefing announcing flaws in the fund's system

- This suspension will allow the SIU a chance to conclude its investigation, explained the minister

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Labour Minister Thulas Nxesi has announced that the entire Unemployment Insurance Fund management team has been suspended.

This announcement was hot on the heels of the Auditor General's briefing which detailed flaws found in the UIF system during lockdown.

The suspensions, according to Nxesi, will provide the Special Investigating Unit with an opportunity to carry out its investigation.

"The DG of the department of labour and employment has suspended the UIF management, the CFO, the COO and the head of the supply chain. These moves allow for the SIU to conclude its forensic investigations completely."
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Nxesi announced that UIF management has been placed on suspension. Image: GCIS/ Flickr
Source: UGC

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The minister committed to not resting until all payments have been accounted for, revealing that 38 court cases have already been instated against individuals and companies relating to Covid-19.

To date, the UIF has disbursed R41.6 billion to retrenched workers as well as individuals suffering from salary cuts during the crisis.

After inviting the Auditor General to conduct a probe to identify risks within the institution:

“We have now received the AG’s reports which point to numerous gaps, risk and inadequate controls and verification processes. This has resulted in illegal payments, amongst others, to recipients of state grants, students receiving National Student Financial Aid Scheme (NSFAS) payments, public servants, UIF employees, inmates, deceased persons and miners."

Earlier, Briefly.co.za reported that Auditor-General Kimi Makwetu has released his findings on Covid-19 relief funding and the details that have emerged paint a picture of the rot in the government's procurement of personal protective equipment during the pandemic.

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Makwetu hosted a briefing on Wednesday and explained how contracts allocated under the R22.4 billion budget for PPE had been misappropriated.

There were clear signs of overpricing, unfair processes and even potential fraud in government procurement of these critical items in the response to the virus.

The existing flaws in the way government procured goods and services was amplified by the introduction of emergency processes for PPE, explained Makwetu.

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Source: Briefly.co.za

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