UIF to be put under administration? That’s what big business wants
Captains of industry want the UIF to be put under administration for a host of reasons. Here they are …
The organisation that wants the UIF to be put under administration is Business Unity South Africa (BUSA). According to their website, BUSA was formed 20 years ago and represents a “unified organisation for business in South Africa.” It has 35 organisational members and boasts the largest GDP and employment contributor in the country. And it says the UIF to be put under administration. But why?
UIF TO BE PUT UNDER ADMINISTRATION?
The Unemployment Insurance Fund (UIF) is a social security endowment generated from a payroll tax that provides unemployment and maternity benefits to workers. And BUSA says that due to ‘systemic dysfunction, corruption, and ineptitude, the UIF must be put under administration. But just how bad are things at the UIF?
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According to BUSA’s statement this week, very bad. The business organisation said the following: “It is clear the current management within the UIF is unwilling or unable to execute their mandate and has embarked on ill-considered systems, such as the eCompliance platform, which have failed and introduced risk in the business landscape, both for companies seeking assurance about the compliance of their providers and for the protection of workers.”
NO LOVE FOR UIF ECOMPLIANCE
The fund’s eCompliance system was introduced more than two years ago in January 2021. It’s goal was to digitise manual processes and make lives easier, but it has instead been widely criticised for its faults.
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BUSA continued, “Failure to address the systemic issues, including alleged corruption, will result in increased frustration among employers and employees and in greater financial losses that could impact the sustainability of the fund.”
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This week, the Minister of Labour and Employment, Thulas Nxesi informed Parliament that the UIF could not complete its annual financial statements for the second year running. He said the 2021/22 annual financials would only be submitted at the end of month.
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Similarly, an audit of 2022/23 had yet to begin, and the final accounts for that would only be tabled by June 2024. It’s clear the UIF’s house is not in order. Accordingly, BUSA has reached out to government several times, but its messages have gone unheard, receiving no response.
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What do you think of the UIF? Do you use the system and is it reliable? Do you think the call for the UIF to be put under administration is fair? Be sure to share your thoughts with our audience in the comments section below. And don’t forget to follow us @TheSAnews on Twitter and The South African on Facebook for the latest updates.