UIF, CF & Supported Employee Enterprise Q1 & 2 2023/24 Performance; with Minister

NCOP Trade & Industry, Economic Development, Small Business, Tourism, Employment & Labour

28 November 2023
Chairperson: Mr M Rayi (ANC, Eastern Cape)
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Meeting Summary

Video

In this virtual meeting, the Committee received comprehensive presentations from three entities of the Department of Employment and Labour -- the Supported Employment Enterprises (SEE), the Unemployment Insurance Fund (UIF), and the Compensation Fund (CF) -- on their performance for the first two quarters of the 2023/24 financial year.

Following adverse reports in the weekend press, the Minister was questioned about the funding of the Labour Activation Programme (LAP). He acknowledged that government's job-creation projects in recent years had fallen short of expectation, but gave an assurance that the correct processes were being followed to ensure the LAP's implementation without any concerns about possible corruption.

Members asked about the current status of the COIDA Amendment Act, noting that it was signed into law in April 2023, with the aim of implementation by January 2024. They wanted details of the Department's plans to restructure the UIF and Compensation Fund. How did the CF fare with implementing its follow-the-money approach in tracking and managing the Temporary Employer/Employee Relief Scheme (TERS) funds, and when would the forensic report be made public? How could the SEE get more support from government departments to increase the sales of its products?

Meeting report

Minister's opening remarks

Mr Thulas Nxesi, Minister of Employment and Labour, emphasised the importance of quarterly progress reports from the three entities in his Department -- Supported Employment Enterprises (SEE), the Unemployment Insurance Fund (UIF), and the Compensation Fund.

The Select Committee's heightened interest in SEE was driven by a commitment to creating job opportunities for persons with disabilities. It had surpassed its revenue targets, reaching R14.5 million against the planned R6 million.

Compared to the previous year, the UIF had reported positive increases in contributions, investment income, and interest on investments. It focused on innovative approaches, process strengthening, accountability, risk management, and addressing bottlenecks.

The Compensation Fund was actively engaged in information technology (IT) investigations to enhance application performance, by identifying user challenges.

Labour Activation Plan (LAP)

Ms S Boshoff (DA, Mpumalanga) asked the Minister for details of plans to restructure the UIF and Compensation Fund, and where the R15 billion to finance the labour activation plan (LAP), which aimed to create two million job opportunities by March next year, would come from.

Minister Nxesi responded that to rely on information in newspapers as fact was "a grievous mistake." He said the Department was ready to give a full report on the processes which were being followed on the LAP programme. In the main, the LAP involved the work readiness programmes, and the capacity of employers to absorb those people. They wanted to partner with the private sector on a rand-for-rand basis and involve other government departments in job-creating initiatives. He had questioned the officials on why the long-standing job creation programmes were not working, and they had come back with plans which they had said would cost R59 billion, which he had rejected and asked where the money would come from. The involvement of actuaries had reduced the amount to R15 billion, and approvals were being sought from all the relevant authorities. The Department was ready to make a written submission to Parliament. He acknowledged that it needed to be very strict when making its payments.

2023/24 Quarterly performance reports

Supported Employee Enterprises

Mr Sibusiso Phakathi, Chief Executive Officer (CEO), SEE, highlighted significant achievements, including the creation of 150 employment opportunities for persons with disabilities. The commitment to inclusivity and diversity was evident in this initiative, contributing to social responsibility. Moreover, there was a commendable 10% increase in sales revenue, reflecting the organisation's growth and financial stability. This positive trajectory was indicative of effective business strategies and market positioning. Additionally, the signing of 10 customer agreements, represented by Memorandums of Understanding (MOUs), underscored the establishment of valuable partnerships. These agreements signified collaborative efforts, opening avenues for mutual benefit and sustained business relationships. Overall, the presentation outlined the organisation's multifaceted success in fostering employment inclusivity, achieving revenue growth, and securing strategic collaborations.

(See attached presentation)

Compensation Fund

Ms Farzana Fakir, Acting Commissioner, Compensation Fund (CF), covered the Fund's performance in its four programmes -- administration; compensation for occupational injuries and diseases (COID); medical services; and orthotic and rehabilitation. In the first quarter, overall performance against target had been 75%. However, in the second quarter, there was a big dip in performance, and performance against target dropped to 38%. This had been very concerning, and had resulted in the implementation of monthly monitoring to resolve the challenges.

Unemployment Insurance Fund

Mr Teboho Maruping, UIF Commissioner, said the Q1 and Q2 performance reports indicated notable progress in financial recovery and accountability. The Fund had successfully retrieved R35.3 million through the Asset Forfeiture Unit (AFU) and the Special Investigating Unit (SIU). Acknowledgement of debt (AOD) agreements had been executed with companies for the recovery of Covid-19 Temporary Employer/Employee Relief Scheme (TERS) funds. The UIF had also received R61 million from the SIU in August, showcasing collaborative efforts to reclaim misappropriated funds. These recovery initiatives underscored the organisation's commitment to financial integrity, responsiveness to irregularities, and strategic partnerships in mitigating financial losses. The UIF's engagement with law enforcement entities and the successful retrieval of funds, aligned with its dedication to stringent financial management, had ensured resources were safeguarded in the interest of its beneficiaries.

(See attached presentation).

Discussion

The Chairperson urged the Department to reach out to the contact people in the labour centres in each province so that Members could stay informed. It was challenging for Members to attend every meeting, and they consistently brought up concerns about a lack of response. If anyone had the contact details of the provincial directors and managers in the labour centres, it would be helpful, and the same went for the Compensation Fund. He encouraged Members to share this information with others who were not part of the Committee, ensuring that each constituent office had the necessary contacts for issues related to the CF or UIF. It was essential to verify the accuracy of this information before submitting it to the office.

Ms Boshoff began by acknowledging the commendable sales growth observed at the SEE, but expressed her concern about the absence of a SEE in Mpumalanga, as it was the only province without one. She highlighted the plight of the people in Mpumalanga who feel excluded, particularly individuals with disabilities, who lacked opportunities for employment in ordinary businesses after completing their education. She asked when the DEL planned to address the establishment of a SEE in Mpumalanga.

Regarding the Compensation Fund, she had heard Ms Fakir discuss the forthcoming internal structures and supply chain management (SCM) training. Ms Boshoff requested a timeline for the implementation of these initiatives. She emphasised the importance of knowing when these changes would be instituted to effectively address issues such as wasteful and irregular expenditure and any fraudulent activities within the CF. She highlighted the need for a clear timeline to enable proactive measures to curb such financial and operational challenges.

She asked about the current status of the COIDA Amendment Act. Noting that it was signed into law in April 2023, with the aim of implementation by January 2024, she expressed concern over the lack of feedback on the progress. According to the Acting Commissioner, three sets of regulations under this amendment act required public comment. However, only the rehabilitation and return to work regulations have been published for comment thus far.

Ms Boshoff requested further details on the other regulations. She sought an explanation as to why they had not been drafted and distributed for public comment, especially given the impending implementation target of January 2024. According to a previous Portfolio Committee meeting, the Acting Commissioner had stated that the rehabilitation and return to work regulations would be finalised by the end of October 2023. However, they were nearing the end of November, and no public communication had been made.

In light of these concerns, she sought an update on the number of comments received, the processes undertaken to address these comments, and whether the comments would be shared with the Committee. Additionally, she inquired about the next steps to be taken on the COIDA Amendment Act, and emphasised the importance of receiving timely and transparent updates on these matters.

Turning to the UIF, she expressed a desire for the Committee to have the opportunity to scrutinise the forensic report about the $5 billion to assess the situation. She noted that the report was approximately 220 pages long, and with numerous media articles circulating, she voiced concerns about potential information being withheld from the committee.

She sought clarification from the Minister on whether the Director-General (DG) and personnel from the UIF had provided reasons for not being suspended. She referred to the Minister's previous commitment at the last meeting, where he had indicated his intention to request a report on this matter from the DG and UIF personnel. The request was made in light of the ongoing discussions and media coverage surrounding the $5 billion in question.

Ms Boshoff repeated her enquiry about the status of the unbundling of the UIF and the CF from the Department, referring to the Minister's earlier allusions to this, and requested an update on the progress of this initiative.

She drew attention to the calls made by Business Unity South Africa to place the UIF under administration. She agreed with this proposal, and noted that even the DA had advocated for the Receiver of Revenue to take over the administration. She highlighted the urgency of the situation and sought further information on the current status and considerations related to these calls and proposals.

She mentioned that the Commissioner had previously spoken about adopting a "follow the money" approach regarding the TERS funds. She requested feedback on how the CF was faring with implementing this approach in tracking and managing the TERS funds. Her inquiry aimed to gain insight into the progress and effectiveness of the measures taken to ensure transparency and accountability in the utilisation of TERS funds.

Ms Boshoff then turned her attention to the Commissioner's mention of new online apps and Unstructured Supplementary Service Data (USSD) applications, acknowledging their significance in the context of the fourth industrial revolution. While recognising the positive aspects of these technological advancements, she sought clarification on whether there were plans to transition towards a more digital approach. She was not suggesting the closure of labour centres, but was interested in understanding whether the increased use of online platforms would impact the staff complement at these centres. The inquiry aimed to assess the potential implications for the workforce in light of the evolving technological landscape in the labour sector.

Ms Boshoff brought up a pressing matter about the South African Post Office (SAPO), noting that there were reports that it had not paid over the deductions made from employees to UIF. She requested the Commissioner or Acting Commissioner to shed light on the actions that would be taken in this instance. She was concerned about the potential impact on employees who, if faced with retrenchment, might encounter difficulty in accessing the benefits they had contributed to through SAPO. Considering the current economic crisis, she stressed the urgency of addressing this issue.

The Chairperson sought clarification on the entities' leadership structures, noting that the UIF had a Commissioner while the CF had an Acting Commissioner. Referencing a prior meeting where they had dealt with the Compensation Fund and the COIDA Amendment, he pointed out that they previously had a Commissioner. He requested an explanation for the change from a Commissioner to an Acting Commissioner in the Compensation Fund. The intention was to understand the reasons behind this change, especially in the context of their previous interactions and discussions related to the COIDA Amendment.

Ms Mashodi (ANC) raised a question on slide 25, specifically addressing the performance indicator related to the request for a sister's device to be delivered within 15 working days. She expressed concern about the omission of the North West Province in terms of scores, especially when all other provinces were performing well on this performance indicator. Ms Mashodi sought an explanation for this omission and inquired whether there were any challenges or obstacles related to this deliverable. Additionally, she asked for information on the measures and remedial actions being taken to address and prevent the recurrence of this challenge. The aim was to gain insights into the specific issues affecting the North West Province's performance in contrast to other provinces and to understand the strategies in place for improvement.

Ms M Mashodi (ANC, Free State) sought clarification on the entity's reported 5.6% achievement in implementing programmes related to their "approval, visible, and accessible strategy" on slide 14. She asked for an explanation of the strategy and its intended outcomes. Moving on to the production and vacancy rate, she asked the Department to provide a detailed breakdown of how many funded posts within the establishment would be filled.

Mr M Dangor (ANC, Gauteng) directed his question to the SEE, specifically focusing on slide number four. He noted that the targets were not met in the first quarter, and sought clarification on whether these targets would be achieved in the subsequent quarters. He asked about the challenges that led to the non-achievement of these targets. His question aimed to understand the expectations for future quarters and to identify and address any challenges that may have hindered the fulfilment of the initial targets.

Mr M Mmoiemang (ANC, Northern Cape) was unable to be heard because of connectivity issues.

The Chairperson inquired about the strategies employed by the SEE on procurement, particularly focusing on provinces that had successfully procured from the entity. Expressing concern that some provinces had not yet utilised these services, he asked whether the SEE had a marketing strategy in place. Did it actively engage with provinces to promote and sell its products? Citing examples from the Eastern Cape, where schools sometimes lacked desks during critical periods, he underscored the importance of awareness of the SEE's offerings. He sought insights into the marketing strategies employed by provinces successfully procured from the SEE. How had these provinces become aware of its products?

SEE's response

Mr Phakathi responded to Mr Dangor's question about the targets for the employment of persons with disabilities in the first quarter. Based on existing orders, he expressed confidence in achieving the 150 overall target for the current fiscal year, which would enhance financial liquidity. He explained that the usual pattern was for absorption to occur in the third and fourth quarters, making the first and second quarters atypical for absorption. With the current and upcoming quarters, the objectives for employing persons with disabilities would undoubtedly be met. He highlighted the implementation of measures, such as pushing for memorandums of understanding (MOUs) and having signed MOUs with orders in place. He emphasised that meeting the objectives would require increased demand, expressing strong confidence in the entity's ability to deliver on this particular goal.

Mr Phakathi elaborated on the support and orders from provinces to absorb persons with disabilities, stating that their ability to employ individuals in this regard depended on the support received from each province in terms of orders. He said the entity had actively showcased its service offerings in every province to demonstrate how it could assist in employing persons with disabilities. Using the example of the Western Cape, where they received substantial orders, he highlighted the increased demand, allowing for the absorption of more individuals with disabilities in their factories.

He mentioned the SEE's efforts in provinces like Limpopo, North West and the Eastern Cape, where they had been to facilities and hospitals, aiming to make their services known and increase support. While acknowledging challenges in certain provinces, particularly the Eastern Cape, he emphasised the need for assistance from Members to spread awareness about the services offered by the entity. He highlighted their online presence and robust efforts to ensure visibility, stressing that increased support translated into a greater ability to employ individuals with disabilities. He concluded by expressing confidence in replicating this success in other provinces with continued support.

Mr Sam Morotoba, Deputy Director-General (DGG): Public Employment Services, DEL, addressed the establishment of a factory in Mpumalanga, stating that they were actively working on it in collaboration with the premier's office. They had established a disability desk within the premier's office and the Department of Public Works and Infrastructure (DPWI). The DPWI had offered two buildings -- an old prison and an old building constructed on water -- which were found to be unsuitable due to poor workmanship. Plans were underway to potentially demolish the latter building. Recent efforts have identified suitable land for the establishment of the factory.

Mr Morotoba also referred to challenges related to the population density of people with disabilities and their accommodation, citing an example in Limpopo where individuals recruited from various schools faced accommodation issues, resulting in scattered residences in Sekhukhune. The third issue addressed by the DGG pertained to the products the factories could produce, and their market share. He highlighted challenges faced in the Eastern Cape, where intermediaries sought to purchase desks at a lower price and sell them to the Eastern Cape government at a significant markup. He stressed the need for government support and arrangements to guarantee the procurement of goods from these factories, ensuring their sustainability.

He addressed the issue involving finances, noting that at a certain stage, the SEE's finances were stable and generating more income. This financial stability enabled the expansion of its initiatives, including engagements with entities like the Korean embassies. There had been a commitment from the Korean embassy to inject machinery into a factory once certain conditions were met, indicating a promising development in the pipeline.

He emphasised the desire to expand the SEE's footprint and operations with the support of companies, asserting that people with disabilities were not confined to specific regions but were distributed across various areas. He highlighted the potential for significant employment opportunities for people with disabilities with the necessary support, further underscoring the importance of collaboration and assistance in realising these expansion goals.

Mr Phakathi provided context on the closure of the Durban factory, attributing it to a massive storm that had caused the cave-in at the sea. This situation persisted for three years, during which the entity had continued paying salaries. The Auditor-General (AG) had identified this as irregular expenditure, due to the payment of individuals who were not actively working. To address the issue, the entity had transferred half of the affected employees about 100 kilometres to Pietermaritzburg. The remaining individuals had chosen retrenchment, and the SEE had provided them with the necessary payouts. Over the last two years, the factory underwent renovation. An agreement with the unions stipulated that those who were retrenched and still within the working age would be given priority when the factory reopened. Currently, the factory was nearly completed, and he anticipated receiving the handover in early January. However, a new challenge had arisen, as the Pietermaritzburg factory was situated on land earmarked for housing construction, presenting a new complication for the entity.

Compensation Fund's response

Ms Fakir offered an apology for not providing specific timelines for certain activities, but assured the Committee that a phased approach was in place. For SCM training, the initial target was for senior managers within the CF to complete this training by January. The broader aim was to have everyone within the Fund trained in SCM processes by March. She stressed the view that responsibility for SCM and procurement extended beyond the SCM directorate to include every individual involved in the procurement process, whether it related to providers, suppliers, or services. This approach underscored the importance of widespread understanding and compliance with SCM processes throughout the organisation.

She provided an update on the COIDA Amendment Act, highlighting the legal process involved. She mentioned that the Act, signed by the President on 7 April, was currently in a transitional phase before being gazetted into law. She explained that regulations, including those for rehabilitation, Section 85, and potentially Section 43, were essential before the Act could be finalised. They had received over 22 comments on the rehabilitation regulations, leading to a delay in finalising them by the end of October. The regulations, once finalised, would not come to Parliament but would be submitted to the Minister with a memorandum detailing integrated and non-integrated comments.

Ms Fakir announced plans to publish other regulations in December, extending the comment period until the end of January. She acknowledged the holiday season, but said there was a need to consider numerous comments to ensure a fair and transparent process. Despite the delay, she expressed a commitment to fairness and transparency. The next steps involved writing to the President at the end of January, aiming for gazetting the amendments by the end of February or the beginning of March. The delay was attributed to the complexity of the comments received, and the commitment to a thorough and transparent process.

She addressed issues related to assistive devices, acknowledging challenges with the director in charge, who faced health-related issues. Despite these challenges, intervention measures were taken directly with junior staff to address non-service delivery. She also mentioned alignment with the Compensation Commissioner for Occupational Diseases (CDPO) in the Northwest in implementing consequence management. This suggested a collaborative effort to address issues, enforce accountability, and ensure proper service delivery in the realm of assistive devices.

Ms Eunice Mazibuko, CF Commissioner responsible for corporate services, provided information about filling vacancies within the Fund. The Fund subscribed to the Department of Public Service and Administration (DPSA) guidelines, which recommend that government departments maintain a vacancy rate below 10%. With a staff complement of 980, the Fund currently had 76 vacancies, which fell below the 9.9% threshold. As of the end of Q2, the vacancy rate was at 7.3%.

Ms Mazibuko highlighted the challenges faced by the CF due to high turnover and the loss of 24 staff members during the same period. Among them, 22 were permanent staff members, and two were interns. The Fund had a recruitment plan in place, outlining procedures to be followed when an official served notice, in order to expedite the advertisement process.

Mr Johnny Modiba, Chief Operating Officer (COO), Compensation Fund, highlighted the visibility and accessibility strategy as a crucial component aligned with the Fund's five-year strategic plan. The primary objective of this strategy was to ensure that its services were easily accessible to clients. To address customer complaints, he outlined more than 70 projects and programmes within this strategy, categorised into various areas such as advertising, organisational educational programmes, marketing, and compliance management.

The focus of the visibility aspect was on ensuring that clients were aware of the Fund's services through various projects and initiatives. On the accessibility side, projects aimed to reduce queues in provinces by introducing omnichannel solutions like USSD, WhatsApp, chatbots, and social media mobile apps. These omnichannels were intended to enhance service accessibility, reduce queues, and lower the cost for clients accessing services. All these projects were integrated into the customer relationship management (CRM) system to prioritise customer-centric approaches.

The overarching goal was to place the customer at the centre of service delivery, aligning with contemporary preferences for accessing services. Using the latest technological innovations was emphasised to enhance service delivery, improve efficiency, and effectively fulfil the Fund's mandate. In total, the CF had more than 70 projects dedicated to achieving these objectives.

Mr Modiba addressed the poor performance in the CF's adjudication and medical claims during quarter one., The challenges cited for the slow performance in its adjudication included a sluggish response from the information communication technology (ICT) system and incomplete information received from employers. This led to follow-ups and back-and-forth interactions, preventing achieving the 25-day target for claims adjudication.

There was an improvement from 68% to 81% in the medical claims invoices in quarter two. The explanation provided was that quarter one experienced a higher volume of claims compared to the previous financial year. Recognising a shortage of human resources in the provinces to handle the increased workload, the CF had redirected resources from the head office to support processing. Traditionally, processing and operations were province-based, and the additional resources from the head office aimed to alleviate the strain and enhance efficiency in addressing the surge in claims.

Mr Modiba referred to the ICT challenges faced by the Compensation Fund, and outlined the short-term goals and strategies to address them. The priority involved procuring more servers to handle the document-intensive nature of the organisation, especially with an increasing number of claims. This was aimed at preventing system slowdowns caused by the influx of documents.

The Fund was also exploring cloud-based options to enhance its ICT capabilities. Adopting cloud solutions aligned with government structures, including the Department of Performance Monitoring and Evaluation (DPME). The ICT director was expected to present more details on the cloud-based approach in future presentations.

Regarding ICT dependency, the Fund relied on Dell for centralised services. Issues related to data line speeds and service level agreements (SLAs) with Dell had been raised with the DEL's Chief Information Officer (CIO). Efforts were being made to improve data line speeds and enhance SLAs through collaboration with the State Information Technology Agency (SITA) to establish more accountable agreements.

He provided insight into the payments for medical services, highlighting concerns about fraud targeting medical service invoices during payments. To address this issue and enhance the efficiency of the payment system, the Fund had engaged with its bank, Absa. Collaborating with ICT and a consultant from Dell, efforts were underway to identify and address fraudulent gaps in the payment process. The goal was to establish a more secure and streamlined payment system, ultimately leading to increased expenditure in the medical benefits programme. This proactive approach reflected the Fund's commitment to tackling fraud and improving the overall effectiveness of its operations.

Unemployment Insurance Fund

Commissioner Maruping addressed two key questions, deferring the response to the Director-General (DG) for clarification. The first question pertained to whether the Committee could be granted the opportunity to scrutinise the report on the TERS, and the DG was expected to provide clarity on this matter.

The second question revolved around the unbundling of the UIF and the Compensation Fund from the Department. He said the Minister had engaged the Government Technical Advisory Centre (GTAC) to work on the project. The GTAC had submitted its first report, covering the groundwork and presenting various options for consideration. He suggested that a comprehensive presentation to the Committee would be beneficial to walk through the report's contents, the options presented, and the Department's considerations. This presentation could provide a thorough understanding of the project.

Commissioner Maruping also mentioned the ongoing work on completing the TERS project by the end of the 2023/24 financial year. Currently, negotiations are underway to address issues related to the Protection of Personal Information Act (POPIA) requirements, and the bank's accessibility to client information. The intention was to bring in a larger team of auditors to conclude the project in the upcoming financial year.

The Chairperson expressed concerns about the potential impact of introducing USSD and app technologies to staff members at the UIF. In response, the Commissioner explained that they had already taken steps to address this issue. All UIF officials across the provinces had been provided with laptops to enhance mobility. The goal was to allow staff to be more flexible and to conduct bulk applications directly at company premises. For instance, if a company was retrenching a large number of employees, UIF staff could visit the company with laptops to process applications on-site, ensuring efficiency and addressing any missing information promptly.

Moreover, the initiative to equip additional mobile buses for inspections would play a crucial role in ensuring compliance and expediting the processing of claims. These buses would be deployed to reach remote rural areas, and the staff on board would have the necessary technology to provide services effectively. The Commissioner emphasised the importance of redirecting staff to inspections, professionalising the process, and engaging both employers and employees. Additionally, plans were underway to monitor 18 more mobile buses, aiming to extend services to the most remote regions with improved connectivity. Overall, these measures were part of the Department's strategy to adapt to online technologies while ensuring that staff could effectively carry out their responsibilities.

The Commissioner addressed non-compliant entities, specifically mentioning meetings with SAPO executives to address compliance gaps. To ensure that all staff members' data was up-to-date and that compliance issues were resolved, the UIF deployed a compliance team that was actively working on the matter. The intention was to close any compliance gaps, ensuring that when the time came for these entities to apply, the UIF could efficiently process their claims. The commitment to regular meetings and collaboration with SAPO demonstrated the UIF's proactive approach to addressing compliance challenges and enhancing the effectiveness of the claims process.

Mr Thobile Lamati, Director-General (DG), DEL, clarified that the forensic report on TERS had been received by the Minister, who in turn had shared it with the President. The process involved ongoing considerations within intergovernmental mechanisms, aiming to ensure proper processing and adherence to legal procedures. The Minister intended to provide implicated parties the opportunity to interact with the report and respond to its findings. While initially contemplating waiting for the outcome of an urgent application, the decision was now to proceed with the report independently. The Minister aimed to release the report to the public once the process was completed, ensuring that implicated individuals were granted due process and the opportunity to respond before facing public scrutiny. He expressed a commitment to keeping the Committee informed as the process unfolds.

Considering the size and complexity of the report and recognising the need for fairness, the process of allowing implicated individuals to respond may extend until the end of December. This timeline accommodated the possibility that some may require legal assistance to prepare their representations adequately. The intention was to complete all intergovernmental processes and representations by the end of December, providing a vantage point to release the report.

Mr Lamati clarified that despite an earlier resolution to defer any appointments until the PricewaterhouseCoopers (PwC) report was reviewed, an agreement with the Minister had led to the decision to proceed with advertising the Compensation Fund Commissioner's post without further delays. This decision was made considering a request to Treasury to allow the process to move forward in light of a soft moratorium that had been imposed.

The Chairperson expressed concern about the limited frequency of meetings between the Select Committee and the Department. The last meeting focused on the COIDA amendment, during which there was a full-time commissioner for the Compensation Fund. In the current meeting, it was noted that there was now an acting commissioner, and he sought clarification on the reasons for this change, and the whereabouts of the full-time commissioner.

Mr Lamati responded that the full-time commissioner had resigned in December of the previous year. The delay in appointing a new full-time commissioner was due to the ongoing study and analysis conducted by PwC on the architecture of both funds. The Department wanted to wait until they understood the future structure more clearly before making new appointments. Now that the report had been adopted, the DEL had decided it was opportune to proceed with appointing a full-time commissioner, and they planned to go to the market to fill the vacancies. A full-time commissioner on a five-year contract was being considered.

Closing remarks

The Director-General expressed gratitude to the Chairperson and Members of the Select Committee, acknowledging their role in representing provincial interests. He highlighted the commitment to restructuring the funds, aiming to modernise their ICT environment for a better citizen experience. The focus included reengineering business processes, expanding the SEE, seeking exemptions from the Treasury for new designated products, and addressing youth unemployment and military veterans' employment. He stressed the importance of more frequent engagements with the Committee, recognising the significance of provincial representation in their operations. He expressed the Department's willingness to engage in future collaborative site visits and partnerships with Committee Members.

The Chairperson adjourned the meeting.

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