The UIF’s Response to July 2021 Unrests

In July 2021, unrests in Gauteng and KwaZulu-Natal provinces had a severe impact on several businesses and workers. The Unemployment Insurance Fund (UIF) quickly took action to assist those affected by providing social relief during challenging times.

Aid Provided by the UIF

The UIF provided much-needed aid to sustain the livelihoods of 6,644 affected workers during the peak of the unrests. They disbursed R21.8 million to mitigate the negative impact of the unrests on workers and their families. To cater to workers whose workplaces were closed due to the unrests, the UIF established the temporary financial relief scheme Workers Affected by Unrest (WABU).

The WABU Temporary Financial Relief Scheme

Since August 2021, the UIF has received over 2,000 WABU applications, and 165 have been approved after thorough verification by labor inspectors from the Department of Employment & Labour. Employers applying on behalf of affected workers were required to meet specific conditions, including being registered with the UIF, providing proof of damage or looting, and submitting necessary documentation to the South African Police Services and insurance companies.

The UIF’s Ongoing Commitment

Teboho Maruping, UIF Commissioner, highlights the Fund’s ongoing commitment to assisting workers and companies in distress during this challenging period. Maruping asserts that the UIF will persist in implementing interventions in accordance with its mandate to stimulate job creation, enhance employability, preserve jobs, and improve the operational efficiencies of companies in distress.

Auditing Initiative

In a show of transparency and accountability, the UIF Commissioner also divulged that businesses benefiting from the WABU scheme were subject to audits. This scrutiny is to verify that the funds disbursed were indeed passed onto employees. Maruping’s “follow the money” auditing initiative has already visited 97 companies, and the process will continue until all funds are fully accounted for.

Results of the WABU “Follow the Money” Project

The WABU “follow the money” project has audited 97 employers, with 74 found to be operating due to UIF intervention, successfully saving 76% of jobs. Among the remaining cases, one company is undergoing liquidation, another is suspected of fraud due to unavailable records, and one is experiencing an ownership change.

Direct Payments to Verified Worker Bank Accounts

To prevent fraud, WABU funds were paid directly into verified worker bank accounts. Exceptions were made only under specific conditions determined by the UIF Commissioner, allowing payments into the employer’s account.

Through the UIF’s swift action and dedicated efforts, thousands of South African workers have received crucial assistance in the face of adversity. By continually offering support to both workers and businesses, the UIF exemplifies its vital role in upholding the well-being of South African society.