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The government’s aid plan for workers has been extended until mid-September, but benefit payments have been suspended.
The Unemployment Insurance Fund (UIF) said that payments from the Temporary Assistance Plan for Employers / Employees (Ters) had been suspended on Monday.
“The FIU has delayed benefit payments from Covid-19 Ters to mitigate the risks identified by the auditor general in the Covid-19 Ters enforcement system,” said spokesperson Makhosonke Buthelezi.
“While we understand the frustration this could cause, we are committed to paying authentic and deserving workers,” Buthelezi said.
He said the fund would announce when payments would resume. It was unclear when that would be.
This is the second time, in less than a month, that the Ters payment has been suspended. At the end of August, payments were suspended for a day so that the Unemployment Insurance Fund (UIF) could address weaknesses in the online system that could expose it to potential fraud.
The benefit payment under Ters, funded by the FIU, was implemented to assist workers affected by the nearly six-month coronavirus shutdown. However, Ters has been plagued by problems, including delays and unauthorized payments, that left workers without access to assistance after companies cut jobs or imposed pay cuts.
Since then, the auditor general has uncovered suspected fraud and irregularities in the system.
The extension follows negotiations in the National Council for Economic Development and Labor (Nedlac) and the signing of the leadership in this regard by the Minister of Labor and Employment, Thulas Nxesi.
“With the shutdowns of some industries extended until September 15, it only makes sense that we continue to protect workers from the worst effects of the pandemic by extending aid payments, which have put much-needed money in the hands of workers. in this country, ”Nxesi said.
Business for SA (B4SA), a social partner in the process, said it appeared that the extension of Ters would last until the disaster state ended, but the final confirmation on the availability of funds for it was awaited.
The national state of disaster, already extended through September 15, is expected to last for another month.
Most of the economy reopened when the country moved to risk-adjusted level 2 last month, however some sectors remain closed as South Africa’s borders remain closed.
Initially, the plan was supposed to cover three months, from April to June, and was one of the main pillars of President Cyril Ramaphosa’s aid package to protect workers and protect some of the economic activity with the country facing the biggest contraction. of GDP in almost a century.
Last week, FIU commissioner Teboho Maruping and top management were suspended pending a forensic investigation into problems with Ters payments.
The employment and labor department said that due to the extension, the FIU will continue to receive applications from March until the end of July until September 15, but no further applications will be accepted after that date.
The receipt of applications for Covid-19 Ters benefits for the period August to September 15 will close at the end of October and no further applications will be accepted after that date.
The FIU has paid more than 41 billion rand to more than 9.5 million workers.
