The Unemployment Insurance Fund (UIF) distributed around R62.5 billion in payments to those impacted by the pandemic through the Covid-19 Temporary Employer-Employee Relief SchemeTERS).
In a recent statement, UIF Commissioner, Teboho Maruping noted that fund has made significant progress during the second phase of their Covid-19 TERS “follow the money" project and plans to intensity their campaign.
According to the UIF, some the objectives of the “follow the money” project include verifying that Covid-19 TERS funds reached the intended beneficiaries at the right time, ensuring that funds were not abused or misused by the employers that employees for whom claims were made are actually employed by companies.
Phase one of the project initially got underway in July 2022 and saw the Fund recovering large sums of money that were wrongfully claimed by employers.
As part of the second phase, commissioner Maruping joined forensic auditors who are knocking on the doors of employers who benefited from the Covid-19 TERS Relief Scheme in Cape Town.
Maruping explained that the decision to join and intensify the audits came after another successful conviction of two directors of a company who defrauded the UIF of R10,6 million worth of Covid-TERS funds.
The directors of the company have been sentenced to 10 years’ direct imprisonment and a fine of R600 000 respectively.
In the past few months, through the work of the auditors, and I must indicate upfront that the collaborative work we are doing with the Hawks, FIC and the NPA has been amazing.
He continues,” We’ve been able to capture over 50 people, just a week ago we caught two more people in KZN that are also out on bail now and will be facing similar charges.”
The UIF enlisted the services of more than 360 auditors with accounting, and forensic investigation expertise to examine financial records, verify the authenticity of claims and confirm if the correct amounts of money were paid over to workers, at the right time at companies who benefited from Covid-19 TERS.
“All of them have been drawn from the private sector, and I think that is the driving force behind bringing the auditors on board, because as a government we don’t have these competencies available,” said the commissioner.
According to Maruping the process of auditing employers is quite intricate and can take up to five days before a preliminary view is formed for an employer to respond to.
He stressed that he hopes the audit he joined will show a positive picture that proves that “we have good corporate citizens that does things right."
“Thus far I am pleased with the work the team is doing and I have personally experienced how involved it is," says Maruping.
Furthermore, he affirmed that they will not rest until they are able to fully account to workers on how their UIF contributions were spent during the Covid-19 pandemic.
Anyone who consciously helped themselves to monies that were meant for distressed workers during the devastating lockdowns when employees lost their income, will have their day in court and will answer for their crimes. They will not escape prosecution.
Maruping noted that a third phase should be expected and will most likely commence in 2024.
