Business Unity South Africa (Busa) believes that the great systematic dysfunction and alleged corruption at the Unemployment Insurance Fund (UIF) warrants placing the entity under immediate administration, which would mean a complete management overhaul.
The business body called out the UIF this week for its poor systematic processes, which have manifested as lengthy delays in application processes and payout times, leading to the breakdown of employer and employee relationships.
Read: The struggle to claim from the UIF continues
According to Busa, the organisation, along with labour union formations, has made attempts over the last three years to engage the government to find solutions to the inefficiencies at the UIF, but it has come up empty.
The business body said it suggested a modernisation of UIF systems that would cut down the avenues for actors to cheat the system, which it said would necessitate an overhaul of the UIF’s ICT systems.
“These engagements have been going on for the last three years, and no progress has been made due to the inability or unwillingness of the UIF Commissioner to address the systemic issues,” Busa CEO Cas Coovadia said in a statement.
“Busa has also written to the Minister of Employment and Labour several times, but we have not received any positive responses,” added Coovadia.
Busa’s views come weeks after Moneyweb’s own reporting on the dysfunction at the state entity, detailing the frustrations of employees struggling for more than a year, in some cases even longer, to receive their UIF benefits. The UIF has yet to provide an explanation of the main causes of dysfunction at the entity.
Read/listen:
UIF investment portfolio grows to R135bn
UIF paid out more than R1bn in December
What’s happening at the SA Unemployment Insurance Fund?
“It is clear the current management within the UIF is unwilling or unable to execute their mandate and has embarked on ill-considered systems, such as the eCompliance platform, which have failed and introduced risk in the business landscape, both for companies seeking assurance about the compliance of their providers and for the protection of workers,” Coovadia said.
“Failure to address the systemic issues, including alleged corruption, will result in increased frustration amongst employers and employees and in greater financial losses that could impact the sustainability of the fund,” he added.
Listen to this Moneyweb@Midday podcast with Jeremy Maggs (or read the transcript):
You can also listen to this podcast on iono.fm here.
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Is there any SOE or department that shouldn’t be placed immediate administration?
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The UIF, like all SOEs, government departments, and ANC municipalities, are under “administration” already!
They have been under administration since 1994. The NDR implies that cadre deployment brings all spheres of public life under the direct control of the central planning Luthuli House.
This means we have to put Luthuli House under “administration”, but who will be able to administrate when a clueless communalist voter has appointed Luthuli House as the ultimate administrator?
The next logical step is to put the voter under “administration”. This is the same conclusion that the Chinese “Communist” party has reached. In order to ensure economic growth and general prosperity, they have to “administer” the democratic expression of the average communalist voter.
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End of comments.