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The Minister of Employment and Labor Thulas Nxesi during a press conference.
- Minister Thulas Nxesi said that despite logistical challenges and reported fraud, the payment rollout was largely successful.
- Nxesi said the Special Investigation Unit was investigating to charge the people who profited from illegal payments and recover the money.
- It said 157 cases were being investigated, including 38 of employers withholding or paying less than employee benefits and 90 alleged fraudulent claims.
The Minister of Employment and Labor, Thulas Nxesi, told the National Assembly on Tuesday afternoon that he could not announce “unilaterally” another extension of the Temporary Assistance Plan for Employers and Employees of the Unemployment Insurance Fund.
Refusing to be drawn, Nxesi said: “I cannot announce that we will extend. That would be one-sided.
The decision has yet to be made, he added.
“It must be the product of the discussion of the social partners. But we must discuss the liquidity of the fund and the scheme with the economists. But I cannot, of my own free will, simply announce that.”
The minister’s comments come a week before Finance Minister Tito Mboweni’s medium-term budget policy statement, and following speculation last week that payments could continue through November.
Millions of South Africans have lost their jobs during the pandemic, and the TERS scheme was developed in response to providing a measure of financial relief.
However, an audit of the plan found alarming gaps including overpayments, underpayments, inflated payments and payments to unqualified claimants, including some R800,000 to deceased, minors or in prison.
Nxesi said Tuesday that despite these challenges, the payments implementation so far has been highly successful.
“As of October 19, since the start of the shutdown, R49.5 billion in benefits had been disbursed in the form of more than 11 million payments, reaching some 5 million laid-off workers,” Nxesi said.
Regarding the Auditor General’s report and the precautionary suspension of the FIU’s management, Nxesi said that the Special Investigation Unit was investigating to impute the beneficiaries of illegal payments and recover the money.
“In some cases, bank accounts have been frozen and assets seized. People have been charged and arrested. Among the 3.5 billion rand of improper payments have already been recovered.”
“My thanks to the many honest and responsible employers who returned overpayments after realizing a mistake had been made; benefits were often calculated based on incorrect information,” said Nxesi.
It said 157 cases had been assigned for investigation, including 38 of employers withholding or underpaying employee benefits, four cases of employers using an incorrect FIU reference number, one case of overpaying employee benefits. UIF to employers and 90 alleged fraudulent claims.
