By Joon Chong, and Shane Johnson
JOHANNESBURG – The Minister of Employment and Labour has introduced the extension of the Covid-19 Momentary Employer-Worker Aid Scheme (TERS) advantages till the top of the nationwide state of catastrophe.
This announcement was confirmed in a discover revealed within the authorities gazette.
That is an encouraging announcement, nevertheless, the Division of Employment & Labour (DEL) should nonetheless verify whether or not will probably be capable of fund such an extension.
The Unemployment Insurance coverage Fund (UIF) will proceed to obtain new TERS purposes for the March – July 2020 durations till 15 September 2020.
The UIF is not going to settle for purposes for these durations after this date.
New TERS purposes for the August – 15 September 2020 durations (the present finish date of the nationwide state of catastrophe) will shut on 30 October 2020. The UIF is not going to settle for purposes for these durations after this date.
The extension of Covid-19 TERS advantages follows the discharge of a report on TERS by the Auditor-Common of South Africa (AGSA).
The report offers with the findings of the AGSA on the audited TERS claims for April and Might amounting to R28bn.
The findings within the report level to a scarcity of verification and controls within the processing of TERS claims.
The findings within the AGSA report, as reported by the media, reveal that:
Over R140m paid to candidates who had already obtained advantages from different state establishments (e.g. college students who obtained stipends from the Nationwide Scholar Monetary Help Scheme)
- Over R10m in overpayments primarily based on incorrect calculations used within the early variations of the TERS system
- About R685m paid to foreigners whose employers had not paid UIF contributions within the final 12 months
- Virtually R170 000 paid to people indicated as being in jail
- Over R400 000 paid to deceased people
- Over R30m paid to workers with invalid id numbers
- About R200 000 paid to workers under the authorized working age of 15 years outdated
- Following the report, TERS funds for brand spanking new and excellent purposes are quickly suspended. Senior officers (together with Commissioner Teboho Maruping) on the UIF have additionally been suspended. The DEL has seconded its Chief Working Officer, Marsha Bronkhorst, to the UIF as Appearing Commissioner.
The momentary suspension is underway to help the DEL and the UIF to handle the related issues and to make sure that correct controls are in place earlier than any additional TERS funds are made.
Joon Chong is a Companion and Shane Johnson, Skilled Assist Lawyer at Webber Wentzel.
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