Compensation Fund Fraud Requires 5 Years and 6 Forensic Firms to Fully Investigate, Department Launches Probe

Compensation Fund Fraud Requires 5 Years and 6 Forensic Firms to Fully Investigate, Department Launches Probe

  • Minister of Employment and Labour Thulas Nxesi announced that the corruption and fraud of the Compensation Fund will be investigated
  • Six forensic firms have been appointed to conduct the investigation and will take an estimated five years to produce results
  • The Compensation Fund was intended for use by employers to provide assistance to employees who sustained injuries or have a prolonged illness

PAY ATTENTION: Follow Briefly News on Twitter and never miss the hottest topics! Find us at @brieflyza!

CAPE TOWN - Thulas Nxesi, the Minister of Employment and Labour, announced that the corruption and fraud of the Compensation Fund will require a huge effort, including six forensic firms working over five years, to be fully investigated.

The department has appointed the six forensic firms as part of a probe into the fund following an order in May by the Standing Committee of Public Accounts (Scopa). The firms' contracts start in January 2022.

Read also

Ace Magashule wants his reputation restored, wants R255 million asbestos corruption charges dropped

According to Business Day, the Compensation Fund is overseen by the government and the money used to finance it is sourced from employers to provide insurance for employees in the case of injury or prolonged illness.

Compensation Fund, Labour and Employment Department, corruption, fraud, business news, Thulas Nxesi
Minister Thulas Nxesi has announced that an investigation into the Compensation Fund has been launched. Image: Waldo Swiegers/Bloomberg via Getty Images
Source: Getty Images

Predictions for the upcoming investigation

The Compensation Fund has been criticised many times due to the corruption and fraud which took place. Scopa said that the main issues facing the fund are a lack of leadership, irregular expenditure and negative audit results, Fin24 reports.

Enjoy reading our stories? Download the BRIEFLY NEWS app on Google Play now and stay up-to-date with major South African news!

"It can’t continue to have disclaimers after disclaimers… is it neglect, is it corruption, is it structural issues? I think it’s a combination of the different factors. I think there are basic controls we need to have that have been neglected," Nxesi told Scopa.

Read also

Covid-19: SA's 3 largest pathology groups agree to lower rapid tests to R150 or less

The investigation will consist of multiple phases, which will take an estimated five years to complete. Areas that will be investigated include cyber security, medical aid claims, investments, pensions, conflict of interest, accounts receivable and supply chain management.

Reactions to Compensation Fund investigation

@Offixial_pm remarked:

"More like 5 years of forensic firms looting state coffers under the pretext of investigating corruption."

@ct_shark asked:

"Who will investigate the appointment of the 6 forensic firms? That too will more than likely be corrupt."

@Vusimtshongolo said:

"What a useless minister."

@Sosa_drip_ believes:

"The weakest minister in the land."

@Peterman43 shared:

"Cadre incompetence and corruption plumbs new depths."

Ace Magashule wants his reputation restored and corruption charges dropped

Speaking of corruption, Briefly News recently reported that Ace Magashule is determined to fix his tainted reputation over the corruption charges he faces over the asbestos corruption trial he and his comrades are facing.

Read also

ANC finally pays staff outstanding wages but December remains unpaid, SA critical

The charges are in relation to an R255 million contract to remove asbestos roofs in the Free State. Approximately 300 000 roofs which are considered to be very dangerous are still not removed.

Five companies and 10 other individuals are facing nearly 70 charges of corruption, fraud, as well as money laundering.

Source: Briefly News

Online view pixel