The Compensation Fund implemented a new banking system in an effort to fight fraud and corruption.
The department of employment and labour is experiencing delays in the processing of Compensation Fund payments.
The department apologised that beneficiaries, employers and service providers could expect delays in services.
Years of adverse findings by the Auditor General of South Africa (AG) have necessitated a restructuring of systems and a period of stabilisation at the Compensation Fund.
‘Temporary delays’
A new banking system was recently implemented at the Compensation Fund in an effort to institute reforms recommended by the AG.
“While this initiative is essential for improving the efficiency, security and accuracy of our financial systems in the long term, we are experiencing temporary delays in payment processing as the systems are being integrated and stabilised,” a notice signed by acting fund commissioner Farzana Fakir said.
“Our teams are working closely with the relevant technical and banking partners to resolve these delays as quickly and efficiently as possible.”
The department said delays were being experienced in the allocation of contributions paid into the new bank account, causing an inability to generate letters of good standing.
“Stakeholders may experience extending extended processing times for beneifit disbursements, medical services payments and refunders,” the notice said.
Beneficiaries needing urgent assistance can contact the Compensation Fund customer care call centre on 0800 321 322 or 0860 105 350, or via email at [email protected]
The department said processing is set to return to normal by 19 August.
Compensation fund problems
Among other services, the fund pays pensions to the dependants of workers killed or maimed while working – a sum of at least R1.4 billion annually.
Fakir appeared before a parliamentary portfolio committee in March where she answered questions about what the AG described as “a total breakdown in internal controls”.
The acting commissioner has been tasked with rooting out fraud and implementing sound financial practices at the fund.
The scale of the project was immense, with the fund only this past financial year able to present a set of financial statements after years of failing to do so.
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