Question NW2673 to the Minister of Employment and Labour

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27 December 2021 - NW2673

Profile picture: Denner, Ms H

Denner, Ms H to ask the Minister of Employment and Labour

Whether, with reference to a certain consulting company (name furnished), which was appointed by the Unemployment Insurance Fund (UIF) to manage risk at the UIF, as alluded to in the Report of the Portfolio Committee (PC) on Employment and Labour, published in the Announcements, Tablings and Committee Reports of 3 February 2021, regarding the PC’s Joint Visit with the Standing Committee on Public Accounts to the Headquarters of the UIF, he will provide the full, relevant details on the (a) location of the specified company, (b) names of the (i) directors and (ii) shareholders, (c) contract period, (d) terms of reference of the agreement between the company and the UIF, (e)(i) annual cost and (ii) total cost of the contract and (f) total return on investment of money saved for the UIF by the company’s risk management services; if not, why not, in each specified case; if so, what are the relevant details in each case;

Reply:

The company is located at 3 Sparrow Close, Magaliessig Ext 22, Benrose, Gauteng.

There is only one director namely: Sujata Singh

The company was contracted period 23 July 2018 to 22 July 2022. The contract period was for 36 months and extended for an additional period of twelve months. The current addendum contract duration is valid from 22 July 2021 to 21 July 2022.

The annual cost of the contract is stipulated below:

Year 1: R14 464 700.00

Year 2: R15 187 935.00

Year 3: R15 947 331.75

The total cost of the contract is R45 599 966.75 and the amount for the current addendum is R 25 934 535.00. An amount of R60 069 112.64 has been paid to Vindhya since inception of contract.

total return on investment of money saved for the UIF by the company’s risk management services; if not, why not, in each specified case; if so, what are the relevant details in each case;

The service provider delivered all the services contracted by UIF to provide support and maintenance to the existing and new UIF Systems. The service provider delivered the projects in the agreed time frames and requirements. The allocated consultants by the service provider went beyond the expectation of the UIF to ensuring that the pandemic projects (COVID 19 TERS and WABU) are implemented in tight frames. On a daily basis the COVID 19 TERS processing of applications and payments are conducted after hours to ensure that the clients are paid within shortest time period as possible. Therefore, the Fund has received return on investment on the current contract.

 

 

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