Employers must prove Covid-19 TERS claims

Businesses that received Covid-19 Temporary Employer-Employee Relief Scheme (TERS) benefits on behalf of their employees, will now have to account for all claims.

This as seven forensic auditors begin investigating the authenticity of the claims and whether money was indeed paid over to workers.

As part of the investigation, which began on Tuesday, employers will have to provide bank statements relating to the Covid-19 TERS funding application, each employee file and a payroll report from 1 January to July 2020.

The Unemployment Insurance Fund (UIF) said this will assist in recouping monies owed by employers and report fraud to law enforcement institutions.

The auditors appointed by the fund will also help with recovering contributions, including interest and penalties, owed to the fund due to new employees being declared during the lockdown.

‘Over the past few months, we have seen with great disappointment that some companies received the Covid–19 TERS benefits, but failed to pay it over to their workers.

‘There are also allegations that employers were paying part of the money and not the full amount, as well as companies using the money for something else other than the intended purpose,’ said Acting UIF Commissioner, Marsha Bronkhorst.

‘The National Prosecuting Authority recently froze R111-million from a businessman who allegedly claimed Covid-19 TERS for 6 600 people when he was the only worker.

‘More cases will follow for those who tried to take a shortcut and they will be held to account,’ said Bronkhorst.

She said although the intention has always been to support companies that could not pay their employees during the pandemic and subsequent lockdown, the fund had a plan to ‘follow the money’.

‘The plan was always to conduct a comprehensive audit of all the payments.

‘I am therefore urging all companies and employers who have benefited from Covid-19 TERS to co-operate with the forensic auditors and supply all the required information within the specified time frames.

‘Failure to comply will lead to legal action,’ the Acting Commissioner said.

HAVE YOUR SAY

Like our Facebook page and follow us on Twitter.

For news straight to your phone invite us:

WhatsApp – 060 784 2695

Instagram – zululand_observer