Annual Report of Unemployment Insurance Fund & Annual Report of Compensation Fund

The Parliamentary Monitoring Group released the Unemployment Insurance Fund Presentation on Annual Report as well as the Compensation Fund Presentation on Annual Report recently.

Summary:
The Commissioner of the Unemployment Insurance Fund outlined its financial performance and a summary of financial achievements. Gains in operations performance were presented and the decentralisation of functions was highlighted as one of the UIF's most important goals. An increase in the total benefit payment was noted. He reported on social security reforms, stakeholder engagements, people management and corporate governance.

The matters highlighted in the Auditor-General’s audit report were discussed and the progress made in this financial year as well.The members expressed concerned about the insufficiernt numbers of taxi drivers and domestic workers registered with the Fund. Concerning UIF benefits for new mothers, the role of agencies was queried. Clarity was sought on the vacancy rate, if the labour force training the UIF was considering introducing was relevant to the South African labour market and if its own staff training produced results.

The UIF was asked how they determined increases and decreases in unemployment and if their surplus could be used to increase unemployment payments. The UIF was asked if the decrease in operational expenditure was a reflection of increased efficiency. The lack of maintenance of rented buildings was raised as a concern as was the accessibility of their services to seasonal workers. The UIF was also complimented on taking their services to the people in cases of recent large-scale retrenchments.

The Compensation Fund provided a background to the state of affairs in the Fund. They reported on the critical challenges faced by the Fund, including a diminished management structure, disciplinary action against managers and the process of constructing a new organisation under way. It was emphasised that there was a plan to get reach their objectives and that Parliament should hold them to that plan.The members appreciated the open approach of the Compensation Fund on the problems they faced. They queried the extent to which the Fund would consider tenders for outside companies to do work on their behalf. The delegation was asked about the accidents in the construction sector with a view to 2010.

The R400 million in unpaid claims was noted as a matter of particular importance. The members asked how they maintained staff morale and queried the reasons for the dismissals and the incidence of fraud in their disciplinary action cases. The members suggested that the Fund tender for a better IT system and highlighted the problem of employees working in an acting capacity, accompanied by the delays in appointing new staff. Other questions concerned the capabilities of the Fund’s employees to cultivate service delivery, the inclusion of foreign workers for compensation and the plans to employ a service provider and how this would affect the construction plans related to the 2010 deadlines.