Compensation Fund: When will payment delays end?
The department of employment and labour is experiencing delays in the processing of Compensation Fund payments.
The department apologised that beneficiaries, employers and service providers could expect delays in services.
Years of adverse findings by the Auditor General of South Africa (AG) have necessitated a restructuring of systems and a period of stabilisation at the Compensation Fund.
'Temporary delays'
A new banking system was recently implemented at the Compensation Fund in an effort to institute reforms recommended by the AG.
'While this initiative is essential for improving the efficiency, security and accuracy of our financial systems in the long term, we are experiencing temporary delays in payment processing as the systems are being integrated and stabilised,' a notice signed by acting fund commissioner Farzana Fakir said.
'Our teams are working closely with the relevant technical and banking partners to resolve these delays as quickly and efficiently as possible.'
The department said delays were being experienced in the allocation of contributions paid into the new bank account, causing an inability to generate letters of good standing.
'Stakeholders may experience extending extended processing times for beneifit disbursements, medical services payments and refunders,' the notice said.
Beneficiaries needing urgent assistance can contact the Compensation Fund customer care call centre on 0800 321 322 or 0860 105 350, or via email at [email protected]
The department said processing is set to return to normal by 19 August.
Compensation fund problems
Among other services, the fund pays pensions to the dependants of workers killed or maimed while working – a sum of at least R1.4 billion annually.
Fakir appeared before a parliamentary portfolio committee in March where she answered questions about what the AG described as 'a total breakdown in internal controls'.
The acting commissioner has been tasked with rooting out fraud and implementing sound financial practices at the fund.
The scale of the project was immense, with the fund only this past financial year able to present a set of financial statements after years of failing to do so.
NOW READ: Compensation Fund missing documents for 25 000 pensioners
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
3 days ago
- The Citizen
Compensation Fund: When will payment delays end?
The Compensation Fund implemented a new banking system in an effort to fight fraud and corruption. The department of employment and labour is experiencing delays in the processing of Compensation Fund payments. The department apologised that beneficiaries, employers and service providers could expect delays in services. Years of adverse findings by the Auditor General of South Africa (AG) have necessitated a restructuring of systems and a period of stabilisation at the Compensation Fund. 'Temporary delays' A new banking system was recently implemented at the Compensation Fund in an effort to institute reforms recommended by the AG. 'While this initiative is essential for improving the efficiency, security and accuracy of our financial systems in the long term, we are experiencing temporary delays in payment processing as the systems are being integrated and stabilised,' a notice signed by acting fund commissioner Farzana Fakir said. 'Our teams are working closely with the relevant technical and banking partners to resolve these delays as quickly and efficiently as possible.' The department said delays were being experienced in the allocation of contributions paid into the new bank account, causing an inability to generate letters of good standing. 'Stakeholders may experience extending extended processing times for beneifit disbursements, medical services payments and refunders,' the notice said. Beneficiaries needing urgent assistance can contact the Compensation Fund customer care call centre on 0800 321 322 or 0860 105 350, or via email at [email protected] The department said processing is set to return to normal by 19 August. Compensation fund problems Among other services, the fund pays pensions to the dependants of workers killed or maimed while working – a sum of at least R1.4 billion annually. Fakir appeared before a parliamentary portfolio committee in March where she answered questions about what the AG described as 'a total breakdown in internal controls'. The acting commissioner has been tasked with rooting out fraud and implementing sound financial practices at the fund. The scale of the project was immense, with the fund only this past financial year able to present a set of financial statements after years of failing to do so. NOW READ: Compensation Fund missing documents for 25 000 pensioners
The Citizen
08-08-2025
- The Citizen
Prisoners and ghosts claim overtime: meet SA's worst-run province
Among those claiming overtime are ghost workers and prisoners. The Free State has been named the worst-run province in South Africa by the auditor-general (AG) due to its underperforming 16 municipalities plagued by poor financial reporting, non-compliance with legislation and deteriorating infrastructure. The cooperative governance and traditional affairs (Cogta) portfolio committee heard that things are not improving in the province, but instead are worsening. The committee, led by Dr Zweli Mkhize, held an oversight visit in the province in late July, which revealed that urgent intervention by national and provincial authorities is needed. Municipalities in the province fail to give residents quality service delivery due to corruption, mismanagement and bloated staff. ALSO READ: Government intervention worsened Mangaung municipality crisis, but recovery underway — mayor Staff taking overtime The committee found maladministration includes irregular appointments, unpaid Eskom bills and deceased individuals claiming overtime. At the centre of staff claiming overtime is the Mangaung metro municipality, headquartered in Bloemfontein. Sello More, Mangaung city manager, revealed that the metro spent R39 million on overtime in the 2023/24 financial year. Some employees were found to have worked up to 120 hours overtime a month. Among those claiming overtime are ghost workers and prisoners. However, More said the metro has implemented a system that will cap or minimise overtime by staff. Internal investigation about overtime Gregory Nthatisi, Mangaung mayor, said investigations revealed that there were employees in the upper echelons of the municipality who approved people who were not even in the Free State, who were not employed by the municipality and some who were in jail to receive a salary, including overtime. He assured that disciplinary action had been taken against those implicated by the investigation. Nthatisi says he has faith the new system will work successfully to reduce overtime abuse, but there might be challenges with the system, as it is still new. The committee were told that staff issues, including employee shortages, equipment shortages and other problems significantly affect service delivery for the metro. However, R61 million has been set aside to fill vacant positions. ALSO READ: Municipalities: It's time to hold mayors to account – AG Issues in the province The AG's Consolidated General Report on Local Government Audit Outcomes for 2023/24 named Free State as the worst-run province, followed by Northern Cape and North West. Things have worsened in the province, as the AG noted that six municipalities failed to submit their financial statements for the 2023/2024 financial year, an increase from four in the previous year. However, not one of the municipalities in the province received a clean audit. Making matters worse, performance reports from 13 municipalities in the province were deemed unreliable. Eskom debt in the province decreased from R6.47 billion to R6.22 billion. However, the AG highlighted this was mainly due to Eskom's debt-relief programme. Recipe for disaster Professor Daniel Meyer, from the University of Johannesburg's School of Public Management, told Newzroom Afrika the report found that 16 municipalities in the province had unfunded budgets, meaning they budgeted without having the income to back it up. 'That is a recipe for overspending and deepening debt.' Commenting on the province's debt level, he believes Matjhabeng municipality will never recover from the more than R8 billion debt it is in. Meyer said that the root of the problem lies in the absence of accountability. 'There's overtime being paid well above what labour regulations allow. In Mafube, the municipality collects pension contributions but doesn't pay them out to workers who retire. That's financial misconduct on another level.' NOW READ: Mangaung municipality in spending crisis after exceeding budget
The South African
07-08-2025
- The South African
The worst-run province in SA - It's not the one you think
One of South Africa's provinces is facing serious challenges in governance, financial management, and service delivery, according to the Auditor-General's (AG) latest Consolidated General Report on Local Government Audit Outcomes for 2023/24. According to BusinessTech , the report, supported by commentary from independent experts such as Professor Daniel Meyer from the University of Johannesburg, outlines persistent problems across the province's municipalities, none of which achieved a clean audit during the review period. A clean audit means that financial statements are free from material misstatements, performance objectives are reported accurately, and all relevant legislation is complied with. And according to these findings, the Free State was revealed to be at the bottom of the barrel in terms of worst-run provinces in the country. The AG's report identified widespread non-compliance with legislation, poor financial reporting, and weak accountability structures as recurring issues in the Free State. Notably, six municipalities failed to submit financial statements for auditing in 2023/24, an increase from four the previous year. Late or missing submissions hinder oversight and delay potential interventions. 'Most of the municipalities that repeatedly did not submit their financial statements for auditing, or submitted them late, were in the Free State,' the AG revealed. Performance reporting also raised concerns. Thirteen municipalities, about 76% of those in the province, submitted reports that were deemed unreliable or not useful for assessing service delivery. The report attributes this to a lack of proper planning, inadequate performance indicators, and poor recordkeeping. The financial position of most Free State municipalities was also described as precarious. The report noted that 81% had enough cash reserves to sustain operations for one month or less. Altogether, municipalities in the province reported net losses of approximately R744.98 million for the period under review. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
