South Africa: Labour Department Should Place Compensation Fund Under Administration

press release

The Compensation Fund is in a state of chaos and needs to be placed under administration by the Department of Labour. I will write to the Labour Minister, Mildred Oliphant, and the Director-General of the Labour Department, Nkosinathi Nhlekoto, to request a joint meeting to discuss this option as a possible solution.

This week the Portfolio Committee on Labour received a comprehensive briefing on the state of the Compensation Fund by Mr Nhlekoto. The bottom line is that the Compensation Fund is no longer able to function properly. It has received four qualified audits in a row, and Mr Nhlekoto reported that it is likely to receive another one for 2012/2013.

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