UIF restructuring in a bid to become more streamlined and responsive

The Unemployment Insurance Fund (UIF) has embarked on a process of restructuring in a bid to become more streamlined and responsive. In the wake of major COVID-19 challenges, the fund says it was put through the ringer.

Speaking in Cape Town on Wednesday, the Fund’s commissioner says there is also concern that the economic downturn will put pressure on the structure.

The UIF says March 2020 brought with it an avalanche of people in desperate need. It says its staff and systems were tested to the limit. The fund was never geared for anything related to the major job losses seen during the pandemic.

When the Temporary Employee Relief Scheme (TERS) was introduced, there were even greater challenges. But lessons were learned and the fund has embarked on a renewal strategy.

“During COVID, we were tested to the core and we are testing to see if we are fit for purpose and we brought in a service provider on board to help us streamline these processes, streamline our structures and we are hoping within the next 12 to 18 months we’ll have a revamped UIF that looks different and in both the people’s side and the systems’,” says Teboho Maruping, UIF commissioner.

Maruping says in March 2020, the fund was R160 billion strong, but two years later, it has shrunk by R40 billion. The closure of businesses and rising unemployment are cause for concern.

During the pandemic, it became evident that many businesses were not compliant with UIF regulations.

“A lot of our businesses, especially in the small, medium enterprises are not compliant and those are due to issues relating to unawareness, lack of awareness. Most businesses are small. They’re not aware of the legislation of the country and there are employers who are just not compliant. So, in terms of us dealing with that issue we’ve decided that we are going to embark on employer advocate sessions to create awareness and educate the employers out there,” says Siphokazi Qasana, Western Cape: UIF director.

The UIF says while its finances are sound, measures have been put in place to ensure a more streamlined service. A new endeavour, the Follow the Money Project is also aimed at rooting out fraud and corruption.

“We followed over a thousand companies that we paid, we confirmed R12 billion that has been paid correctly. There’s over R400 million that has not been paid correctly and we’ve sent all these cases, it’s 54 companies in total, we’ve given it to centres which includes the Hawks, SAPS and the financial services institutions where they are tracking these companies and with this tracking we’ll be able to take about, maybe between 5 and 10 people are now facing charges in court, some of them have already been found guilty and serving sentences; some of them are facing possible judgment,” Maruping added.

Maruping says investigations are also underway into possible UIF employee involvement in alleged fraudulent activities.