The Portfolio Committee on Employment and Labour has been gravely concerned about the Unemployment Insurance Fund (UIF)’s failure to submit its annual audited report for tabling in Parliament. On Wednesday, 31 May, the committee invited the UIF to explain itself on this unacceptable failure.

The Minister and Director-General of the Department of Employment and Labour, the Commissioner and chief directors of the UIF, as well as the chief directors of provincial operations and the Director of Internal Audit all honoured the committee’s invitation. The Chairperson of the UIF Board and the Chairperson of the Audit Committee were also present.

The committee heard that the main problem contributing to the non-submission of credibly audited UIF annual reports to Parliament is that the 40 companies that the Public Investment Corporation (PIC) invests in on behalf of the UIF have different financial year-ends. The committee felt that this problem has a long history and it is time it is resolved. If this means that the PIC must be invited to explain itself to the committee, that shall be considered.

The committee welcomed the remarks from the Chairperson of the UIF Board, who was candid, open and transparent with the committee. The Chairperson indicated that the UIF needs decisive leadership that will uproot the culture of poor performance and who will seriously apply consequence management.

The Minister Employment and Labour, Mr Thulas Nxesi, shared the sentiments of the UIF Board Chairperson. Mr Nxesi emphasised that a lot of work is taking place to ensure that challenges identified in the UIF and in the Compensation Fund are addressed. The committee will be briefed on these developments at a later stage.

In welcoming the department’s report, the committee Chairperson, Ms Lindelwa Dunjwa, was pleased that the committee’s questions to the department and the fund were answered. However, the UIF’s challenges remain. Ms Dunjwa thanked the Chairperson of the UIF Board for unapologetically highlighting the problems riddling the fund.

Ms Dunjwa told the chief directors that the committee invited them to the meeting so that they can hear the way the committee demands accountability from the department. She also thanked the Minister and the Director-General and said that the committee “will always go where the eagles dare”. This is why she has been insisting that chief directors of provincial operations must always be present in the committee meetings because this is where most of the work is taking place. Ms Dunjwa called on them to improve performance at their level.

Source: Parliament of South Africa