Nxesi: UIF recouped R3.5bn in wrongful payments

UIF’s Temporary Employer/Employee Relief Scheme (TERS) was set up earlier this year to supplement earnings for employers who have had to close their doors, or part of their operations, as a direct result of the Covid-19 pandemic, and where an employee has suffered a loss of earnings. 

But the relief fund has been fraught with technical glitches, errors in payments, as well as scandals of fraud and corruption. 

On Tuesday Nxesi told the National Assembly that the Special Investigating Unit (SIU) has made headway in their investigations into corruption and fraud in the disbursement of UIF funds during the pandemic. 

“In some cases, bank accounts have been frozen, and assets seized, people have been charged and arrested. At least R3.5bn of wrongful payments have been recouped many thanks to the many honest, responsible employers who returned overpayments after realising a mistake had been made.”

Nxesi said some wrongful payments were made as a result of incorrect information submitted by applicants. 

At least 157 cases have been allocated for further investigations. 

“The House will want to know if criminal cases have already been opened – 3 cases have been instituted by the complainant, the UIF has instituted 75 criminal cases, 11 people have been arrested and 10 have already appeared before the court.”

Nxesi said despite these hurdles, the UIF TERS fund has achieved its purpose. 

“I would like to confirm that the UIF Covid-19 TERS benefit is implemented as it was intended, to cushion the employees that have been temporarily laid off,” he added.

Listen to Nxesi below: