The global workforce has been heavily impacted by the COVID-19 pandemic. Many employees have lost their jobs or experienced reduced working hours. In South Africa, the Unemployment Insurance Fund (UIF) has played a crucial role in providing financial relief to workers, particularly in KwaZulu-Natal.
Financial Relief Provided by the UIF
The UIF has disbursed a staggering R9.3 billion to 774,370 KwaZulu-Natal workers through its COVID-19 Temporary Employer-Employee Relief Scheme (Covid-19 TERS) between March 2020 and 2022. Additionally, during the 2022/2023 financial year, the UIF distributed R2.4 billion to 272,889 workers as normal benefits, including unemployment, maternity, illness, and death. The UIF also paid out R17.7 million to 5,571 workers affected by unrest through its Workers Affected by Unrest (WABU) temporary financial relief scheme.
Sectoral Benefits of the UIF
According to a media briefing led by UIF Commissioner Teboho Maruping at the Royal Hotel in Durban Central, the top 10 sectors that benefited the most from these funds were Trade, Personal, Construction, Iron, Professional, Textile, Air, Entertainment, Food, and Education.
National Distribution of the UIF
Nationally, the UIF has distributed R64 billion to approximately 5 million workers through the COVID-19 TERS. Smiso Nkosi, a Manager in the UIF Commissioner’s office, highlighted that forensic auditors continue to audit companies across the country to ensure the proper allocation of funds and timely disbursement to workers.
Combating Fraudulent Activities
The UIF’s “follow the money” project has recovered R2.6 billion by auditing companies that benefited from the COVID-19 TERS. Audits uncovered instances of fraud, such as employers applying for ghost employees, inflating salaries in applications, applying for terminated employees, and applying while operating as essential services during lockdowns.
To combat fraudulent activity, the UIF has implemented measures against uncooperative employers, including referring cases to the Special Investigating Unit and Directorate for Priority Crime Investigation (HAWKS) for criminal investigation, refunding all COVID-19 TERS funds, blocking employers from UIF service offerings, and blacklisting them from doing business with the UIF.
Monwabisi Mangcotywa from the UIF’s Risk and Fraud Unit in KwaZulu-Natal province revealed that more than 20 suspects had been arrested for COVID-19 TERS-related fraud through joint investigations. The cases are currently before the courts. Additionally, the UIF is taking disciplinary action against officials implicated in fraud cases or accused of soliciting bribes from clients to expedite claims at labor centers in the province.
Job Preservation by the UIF
Aside from providing financial relief, the UIF has also played a significant role in job preservation. Commissioner Teboho Maruping reported that 7,564 jobs were preserved by the UIF in the first quarter of the 2023/2024 financial year through the Labour Activation Programme (LAP).
The Role of the UIF
As an entity of the Department of Employment and Labour, the UIF has provided short-term financial relief benefits to qualifying and contributing workers and their beneficiaries. The organization’s efforts have provided a vital lifeline to those impacted by the pandemic and related economic challenges.
