Latest news with #LabourActivationProgramme
IOL News
2 days ago
- Business
- IOL News
UIF tightens oversight after fraud attempts delay employability stipends
The Department of Employment and Labour. The Unemployment Insurance Fund (UIF), which administers the LAP, said a recent review identified weaknesses in administrative processes that had created opportunities for fraudulent claims. Image: Leon Lestrade/ Independent Newspapers Payments of stipends to participants in South Africa's Labour Activation Programme (LAP) have been delayed due to attempted fraud by some partnering companies, the Department of Employment and Labour said on Friday. The Unemployment Insurance Fund (UIF), which administers the LAP, said a recent review identified weaknesses in administrative processes that had created opportunities for fraudulent claims. In response, the UIF is intensifying scrutiny of invoices and attendance records submitted by programme partners to safeguard public funds and restore payment timelines. 'We are strengthening internal controls and verifying records more rigorously to improve accuracy and efficiency,' the UIF said in a statement. As part of its corrective measures, the UIF has begun implementing a new electronic system to streamline stipend payments and has hired short-term contractors to assist with the processing of outstanding invoices. Internal capacity has also been reallocated to support the administration of the programme. While the exact scale of the attempted fraud has not been disclosed, the department confirmed that discrepancies are being investigated and legal action will be pursued against companies found to have submitted false information. Jacky Molisane, acting Director-General of the Department of Employment and Labour, assured participants that sufficient funds are available to cover stipends for the current financial year. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'We want to reassure all beneficiaries that payments will be made, but only in line with proper procedures. We are committed to protecting the integrity of the programme,' Molisane said. She cautioned beneficiaries against resorting to disruptive behaviour, including vandalism and violence, in response to payment delays, warning that such actions could jeopardise their participation in the programme and future employment prospects. 'The Labour Activation Programme must remain impartial and free from undue influence. Any attempt to circumvent procedures, including enrolling ineligible individuals, will be dealt with in line with the law and existing agreements,' Molisane said. BUSINESS REPORT Visit:
Daily Maverick
04-06-2025
- Business
- Daily Maverick
‘We haven't recovered a cent' – private security watchdog says R129m UIF-linked training fund ‘lost'
South Africa's private security watchdog is at the centre of a multimillion-rand matter stemming from 2019, involving 'material irregularities' and the non-delivery of services. Watchdog head Manabela Chauke has told Parliament that not a cent has been recovered. The Private Security Industry Regulatory Authority (Psira) has come under fire in Parliament over a 2019 training initiative involving more than R129-million that has led to red flags being raised over 'irregularities'. MPs have also demanded to know why the situation is still dragging on and has not been fully dealt with after six years. One suggested calling for suspensions with immediate effect because the overall situation was hampering young jobseekers. Another proposed that Psira's board be relieved of its duties to make way for fresh faces. The matter involves a nearly R130-million contract linked to the Unemployment Insurance Fund (UIF), discussed in a police committee meeting on Wednesday, 4 June 2025. Setting the tone of Wednesday's meeting was what happened earlier on social media. Social media sparring Two days before, on 2 June, the police committee chair Ian Cameron took to Facebook. He posted that the committee was set to interrogate Psira 'over deeply concerning allegations involving the misuse of over R144-million in public funds.' Cameron's post continued: 'The money, allocated via the UIF's Labour Activation Programme, was intended to fund digital training for unemployed citizens through a service provider… 'What followed raises red flags… Learners listed in attendance registers have since denied participating. No training certificates have been issued. Facilitators remain unpaid. Tablets budgeted for the project were never delivered.' Psira then hit back. On its X account, Psira said it noted Cameron's Facebook post and had to 'set the record straight'. We've noted recent social media posts by the Chairperson of the Portfolio Committee on Police concerning PSiRA's material irregularity matter. We respect parliamentary oversight, but must set the record straight on key facts and legal process. — IG: PSiRALive (@PSiRALive) June 3, 2025 In a series of tweets, it stated: 'This matter is now under legal and forensic investigation. While Parliament is free to oversee progress, delving into the merits of the case risks violating the separation of powers and prejudicing legal proceedings. 'It is deeply concerning that a presiding Chairperson would publish judgmental statements on an active matter. Public office bearers are expected to uphold fairness and impartiality in all oversight processes. 'We've formally requested that the Chairperson recuse himself from the 04 June 2025 session in the interest of transparency and due process.' Despite Psira's social media posts and stance, Cameron chaired Wednesday's police committee meeting. 'We've recovered nothing yet' Irate MPs spoke out at the hearing. Several figures – some relating to payments Psira had made – were also discussed as the MPs tried to extract more information from the private security watchdog. At one point during the meeting, Makashule Gana of Rise Mzansi asked Psira head Manebela Chauke about how much money it had recovered. Chauke responded: 'We've just said we've appointed a forensic investigation. 'We've come up with a report, out of the report, preliminarily we've issued a letter of demand which has lapsed on the 26th of May… 'So, the answer is we've not yet recovered anything.' Gana pushed him on this point, asking him to confirm if, 'at the moment you have recovered zero.' Chauke replied: 'I'm not sure if my answer is not audible – we have not recovered a cent. We are in the process of recovery.' 'Likely financial loss' and suspensions A Psira presentation on the matter was shown at Wednesday's meeting. It said that in April 2019, Psira had signed a 'funding agreement' with the UIF to 'implement a national training initiative.' Between October 2019 and February 2022, advance payments were made 'to the appointed service provider before actual training begins as agreed and in compliance [with] Treasury regulations.' The presentation said that in March 2023, the Auditor-General of South Africa identified 'a likely financial loss due to non-delivery of services and weak contract oversight'. A few months later, in August 2023, the project resumed and 'the number of trained learners significantly' increased. The presentation said that after several other processes, a forensic report was finalised and submitted to the Auditor-General in March 2025. 'Two officials illegally accessed the forensic investigation report without authorisation,' it said. Both officials were suspended. R129m training contract An Auditor-General presentation was also shown during Wednesday's meeting and provided more details about the April 2019 agreement between Psira and the UIF. It involved the security watchdog acting as an agent and, over six months, providing 'Election Observer and End-User Computing training' for 7,071 preselected individuals on behalf of the UIF. 'The value of the contract was R129,982,657.50,' the Auditor-General's presentation said. Psira also entered into a service-level agreement with a supplier to provide the same training on behalf of the UIF. This covered April to June 2019, a date later extended, and the contract amount was valued at 'R80,062,877.00.' 'Material irregularity' The Auditor-General presentation said: 'During [the] 2021/22 financial year, Psira paid an amount of R15-million to the supplier. 'This payment was not supported by sufficient evidence to enable us to verify the occurrence of the transaction.' In 2023, a follow-up audit was done on the transaction, and it was noted that Psira made follow-up payments to the supplier. An invoice dated May 2019 reflected R2-million, another from October that year showed an amount of nearly R55-million, and an invoice from February 2022 showed R15-million. 'Through [the] audit process, we discovered that the supplier had not yet rendered services equivalent to the payments made,' the Auditor-General presentation said. 'As a result, an amount of R30,182,839.73 was made as an advance payment to the supplier before the services were rendered.' This contravened a Treasury regulation. 'This advance payment resulted in material irregularity,' the Auditor-General presentation said. According to the presentation, a progress report requested in September last year showed that 6,507 learners had been trained. It added: 'Psira terminated the contract with the supplier due to indicators of fraud and misrepresentation. 'Termination took effect from 20 May 2024.' 'Young people disadvantaged' During Wednesday's meeting, MPs were critical. The DA's Dianne Kohler Barnard pointed out that the matter was 'dragging on and on'. Lisa Schickerling, also of the DA, said: 'It cannot take six years to determine wrongdoing. There's something seriously wrong here.' She said the situation was so worrying that the police committee should request that the Psira board be relieved of its duties and a new one put in place 'to ensure that everything in Psira is running smoothly'. Schickerling said: 'We are losing money. The country is losing money. The citizens of this country are paying tax. And we are here to protect that money.' ActionSA's Dereleen James said she understood that the beneficiaries of 'these opportunities'(presumably the training initiative that Psira was involved in, and the focus of Wednesday's meeting) were usually between the ages of 18 and 35 years old. 'How does this affect our communities – what has happened here today?' she asked. 'We cannot just sit and accept that the youth of this country has been disadvantaged because of corruption and because of lack of leadership,' James said. DM
Zawya
21-03-2025
- Business
- Zawya
South Africa: Employment and Labour Committee Supports Interventions to Avert Job Losses at ArcelorMittal South Africa (AMSA)
The Portfolio Committee on Employment and Labour supports government's intervention and engagement with ArcelorMittal South Africa (AMSA) regarding potential job losses due to the company's decision to wind down its long steel business, exploring avenues to avert job losses and support affected workers. AMSA raised concerns about possible job losses in the KwaZulu-Natal and Gauteng provinces as a result of possible closure of the company. The briefing the committee received from the Department of Employment and Labour yesterday was appreciative of the cooperation between the departments of Employment and Labour; Trade, Industry and Competition; and other role-players to secure the possible return of AMSA. Regarding the report of the performance of the Department of Employment and Labour's entities – the Unemployment Insurance Fund (UIF) and the Compensation Fund (CF) – in the third quarter, the committee noted areas of overachievement in the quarter from both entities in the area of service delivery. However, the committee raised concerns about a pervasive culture in the department of not filling vacant positions and of employing people in long-standing acting positions. The department should lead by example by filling vacancies to promote a culture of doing so in the entire government system, as this is a problem across all spheres of government, the committee said. The department was unable to respond to questions on this issue from the committee about why these posts were not filled permanently with suitable and competent people. The department asked to be granted another opportunity to provide the committee with a comprehensive response on this issue. On the Labour Activation Programme (LAP), the committee Chairperson, Mr Boyce Maneli, said this is a noble project that creates employment opportunities and promotes entrepreneurial development. In this regard, Mr Maneli said the committee is happy with the funding of LAP projects in the Western Cape, Eastern Cape and in North West, which launched recently. 'We know that this project will cover all the provinces at the end,' he said. Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
