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.
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'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.
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