The Portfolio Committee on Employment and Labour today met with the Department of Labour and two of its entities, the Compensation Fund (CF) and the Unemployment Insurance Fund (UIF) on matters of concern raised by the Auditor-General (AG) about the entities.
The committee raised serious concerns about the CF for obtaining disclaimer audit opinions for 10 years, and called for an urgent turnaround at the entity. "You can't have 10 years of disclaimers, there is something fundamentally wrong. This whole mess that the Compensation Fund finds itself in talks more about the capacity of the leadership," said committee Chairperson, Ms Lindelwa Dunjwa.
The committee was also unhappy about the fact that the UIF had regressed on its audit outcomes and called on the entity to act on the warning signs. The Auditor-General found weaknesses on governance, leadership, controls and non-compliance with legislation and prescribed regulations.
The department told the committee that it was finalising an action plan on the turnaround of the entities, and it will be presented to be committee for scrutiny. The Chairperson said the committee will monitor the process to ensure that the department and its entities are delivering on their mandate and to the satisfaction of the public.
"The UIF and CF boards have got the responsibility to make sure that the challenges at the two entities are addressed, no matter how difficult they might be," said the Chairperson.