Latest news with #UIF
IOL News
4 days ago
- Business
- IOL News
R4bn Question: Can UIF sustain its core mission amid job creation push?
The UIF Labour Activation Programme's mandate is to mobilise resources, partnerships, and implementation capacity to drive sustainable job creation, retain existing jobs, and support unemployed and vulnerable groups. Image: Supplied SOUTH Africa stands at yet another crossroads where political expediency challenges institutional integrity, as the Unemployment Insurance Fund (UIF) assumes an unprecedented role in funding a job creation programme traditionally financed by the National Treasury. The Department of Basic Education (DBE), in partnership with the Presidential Employment Stimulus (PES) initiative under the Presidency, has turned to the UIF for R4 billion to fund the Teacher Assistant Programme — a short-term intervention aimed primarily at unemployed youth. According to the DBE's April 2025 CareersPortal document, the Teacher Assistant Programme, now in its fifth phase, aims to create about 200 000 positions for young unemployed people aged between 18 and 34. Participants receive monthly stipends of R4 000, plus R30 airtime, for six months of practical work experience in schools across South Africa. President Cyril Ramaphosa confirmed the programme's scale and significance during a June 2 statement. 'Today marks the 'first day at school' for about 200 000 young people at over 20 000 schools nationwide. They are participants in the fifth phase of the Basic Education Employment Initiative (BEEI), the largest youth employment programme in South Africa's history.' Ramaphosa further emphasised that the initiative is funded by the UIF Labour Activation Programme alongside national government contributions. 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 Next Stay Close ✕ Ad loading Lala Maje, director for initial teacher education, stated: 'This initiative comes as South Africa continues to battle high levels of youth unemployment and an education system that is stretched and overburdened during these difficult economic conditions. Phase five of the BEEI, a component of PES, offers a timely intervention.' However, this funding model starkly contrasts with the UIF's core statutory mandate. The UIF is 'a statutory social security mechanism' funded by contributor deductions and owes its duty solely to those who have been previously employed and have made contributions. The UIF Labour Activation Programme's mandate is to mobilise resources, partnerships, and implementation capacity to drive sustainable job creation, retain existing jobs, and support unemployed and vulnerable groups. It is designed to complement and accelerate PES's broader economic recovery and inclusive growth objectives. The Industrial Development Corporation (IDC), which has been appointed as the paymaster for the programme, confirmed receiving an advance disbursement of R2 billion — half of the total requested R4 billion — from the UIF. Questions sent to the UIF, DBE, and the Office of the Presidency were unanswered at the time this report was compiled. The UIF recently came under fire in Parliament for delaying payments to workers who became unemployed or were unable to work. The Fund is reportedly plagued by persistent service delivery challenges, payment delays, and limited accessibility for vulnerable workers, which exacerbates the hardships experienced by those it is meant to protect. The Fund briefed the Parliamentary Select Committee on Economic Development and Trade on its budget and strategic plan, as well as its annual performance plan. MPs stated that the UIF was failing workers who became unemployed or were unable to work due to various reasons. The Labour Party of South Africa has condemned the 'diversion' of UIF funds to the PES, describing it as 'economic injustice' that violates the fund's mandate. 'The UIF was never designed to be a general job creation fund,' the party said, emphasising that PES beneficiaries did not contribute to the scheme. The party highlighted the R2 billion advance payment made to PES programmes, lamenting that retrenched workers would wait months while billions flowed unchecked to 'political programmes'. The party warned that paying non-contributors higher stipends than UIF beneficiaries risked collapsing the fund. The UIF and PES operate under distinctly different mandates, frameworks, and funding models that reflect fundamentally divergent labour market roles. This situation raises critical questions about whether the PES is effectively encroaching on the UIF's mandate by sourcing funding — including advance payments — in ways inconsistent with UIF's legal and operational principles. The UIF, established by the Unemployment Insurance Act, is legally empowered to register all employers and employees in South Africa for unemployment insurance benefits. It primarily provides short-term unemployment relief to eligible contributors who have formally paid into the fund. The UIF functions under strict governance and financial protocols — its payments were intended as a stopgap during times of crisis, such as the Covid-19 lockdowns, to provide relief for a limited period until economic recovery could resume. Payments are disbursed monthly based on verified claims, and advance payments are strictly prohibited to protect the fund's sustainability and accountability. In contrast, the PES is funded directly from the National Treasury and designed as a temporary economic relief initiative targeting short-term employment, especially among youth, and to stimulate the economy through multiple exit strategies. The reported R2bn PES advance payment already made marks a significant departure from UIF norms, exposing the fund to financial risks and contradicting social insurance principles. Meanwhile, the UIF attributed delays in Labour Activation Programme stipends to 'administrative discrepancies and attempted fraud' by partner companies. It promised improvements via stricter invoice verification and a new electronic payment system to resolve backlogs. Jacky Molisane, acting director-general of Employment and Labour, warned beneficiaries against protests, stating: 'The Department reserves the right to take legal action against those undermining processes.' She confirmed that there was sufficient budget allocation for current stipend payments. Tshepo Ramodibe, IDC Head of Corporate Affairs, assured that the funds would be managed in accordance with the Public Finance Management Act (PFMA), with oversight from internal audit and subject to external audit. Ramodibe clarified that the IDC's role is strictly as a pay agent for BEEI, distinct from an implementation agent with autonomy. He firmly denied any claims that political or executive pressure influenced IDC's acceptance of this role. South Africa's youth face a persistent unemployment crisis that limits their economic independence and future prospects. Initiatives like PES and the UIF Labour Activation Programme have the potential to be transformative if implemented effectively. The UIF focuses on accredited training and sustainable job creation, offering structured pathways into formal employment, while PES provides essential short-term relief and work experience. Nonetheless, fundamental questions remain: Is the PES pushing the UIF out of its core mandate? Is the use of UIF funding in this manner undermining the fund's sustainability, legal integrity, and governance standards? Get the real story on the go: Follow the Sunday Independent on WhatsApp.
IOL News
11-07-2025
- IOL News
Thami Ntuli's urgent warning to KwaZulu-Natal businesses on undocumented workers
KwaZulu-Natal Premier Thamsanqa Ntuli addresses officials during the inspection of a bakery in Umbilo, Durban. The purpose of the visit was to address concerns raised by intelligence reports regarding the employment of undocumented workers. Image: Leon Lestrade / Independent Newspapers KwaZulu-Natal Premier Thami Ntuli issued a strong warning to businesses not to hire undocumented workers who are in the country illegally during Operation Engangeni Ngesango Iyafohla on Friday. Ntuli was speaking during an unannounced raid on two companies, an accessories store and a clandestine bakery in Umbilo. Ntuli, in his role as the executive authority for Community Safety and Liaison, said people were now showing confidence in the police and were tipping off government officials and police on possible criminal acts and labour law transgressions. When the Department of Labour officials raided the accessories store, they discovered that 37 staff members were not registered with the Unemployment Insurance Fund (UIF). The store's owner declined to speak to the media and did not wish to provide his name. Labour officials had taken down the details of all the workers. The owner was also warned by the government and given two weeks to comply with labour laws regarding the UIF. They were issued with compliance notices. Ntuli said that police were conducting similar raids daily throughout the province. A bakery was uncovered in a large building where biscuits were made. Here, Ntuli addressed staff about their rights as workers, adding that the conditions at the bakery were not hygienic or clean. 'I was informed by the police that the owner had fled from the bakery along with some employees. It means he knows that he was doing something wrong. Nine people were arrested for not having proper documents. From what we had seen, this was a massive operation that could be supplying the entire province,' Ntuli said. He was also concerned about employees working long hours and being paid salaries that are below the minimum wage. 'We urge those living in the province and country to acquire the proper documentation. If this place is found not to follow procedure, the inspection team will decide whether to shut down operations here,' Ntuli said. The warehouse did not have adequate signage on the exterior of the building, which was also a concern for government officials. 'We have so many people looking for a job. We urge owners not to flout the laws of the country. In the past, some owners were arrested. Situations like this unsettle people. Police are hard at work because of the leadership in the province,' Ntuli said. [email protected] Nine people were arrested at a bakery in Umbilo fot not having documentation to be in South Africa. Image: Zainul Dawood
The Citizen
09-07-2025
- The Citizen
UIF fraud case: More suspects to appear in Bloemfontein court
UIF fraud case: More suspects to appear in Bloemfontein court According to the NPA, more suspects are expected to appear in a Bloemfontein court today in connection with a UIF fraud and corruption scheme, reports Bloemfontein Courant. 'Additional suspects are expected to be added to the case and will appear in court on July 9,' said NPA spokesperson Mojalefa Senokoatsane. Senokoatsane revealed a syndicate was uncovered that allegedly recruited individuals and used their personal information to submit fraudulent UIF claims. 'These claims were registered using legitimate company names – without the knowledge of the companies involved – and were processed as if they were valid. The fraudulently obtained funds were then allegedly shared among recruiters, the implicated government official and, in some cases, the identity holders themselves,' he added. With the Department of Labour having suffered a financial loss of over R1.5m, the accused face various charges including fraud, corruption and money laundering. Sixteen suspects who appeared in court earlier this week were granted bail. All 16 appeared in the Bloemfontein Magistrate's Court on Monday for their initial appearance. Bail was granted as follows: Kelopa Bethuel Mahlatsi – R10 000; Kamoho Letuka – R3 000; Bongani Radebe – R2 000; and the remaining 13 accused – R1 000 each, Mojalefa added. The case has been postponed to August 25 for further investigation. Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
04-07-2025
- The Citizen
Minister Meth hails arrests in R1.5m UIF fraud bust
Labour minister praises police after arrests in UIF fraud scheme involving fake companies and stolen identities. Minister of Employment and Labour Nomakhosazana Meth. Picture: Department of Employment and Labour Employment and Labour Minister Nomakhosazana Meth has welcomed the arrest of a Labour department manager and several others in a major Unemployment Insurance Fund (UIF) fraud takedown across the Free State and Gauteng. The authorities uncovered a syndicate using fake companies and stolen identities to defraud the fund. Police in the Free State launched a takedown operation on Thursday in Bloemfontein, Bethlehem and Gauteng, following a detailed Crime Intelligence probe into fraud and corruption at the Department of Labour. Syndicate to defraud UIF Free State police spokesperson Brigadier Motantsi Makhele said the starting point was at the Labour House in the Bloemfontein CBD, where one person of interest was arrested. Makhele said this comes following months of painstaking research into a complex fraud involving false claims for funds from the UIF. ALSO READ: Free State police close in on UIF fraud suspects 'It is alleged that the masterminds behind this operation recruited unsuspecting individuals and used their personal information to register fictitious companies, which in turn submitted false claims to the Department of Labour,' Makhele said. 'The fraudulently obtained funds would then be shared among the recruiter (or runner), in some cases even the person whose identity was used.' Estimated R1.5 million lost According to estimates, the department may have lost more than R1.5 million. Police arrested a 42-year-old office manager at Labour House in Bloemfontein, marking the key breakthrough in Thursday's operation. He is thought to have played a significant part in facilitating the illegal operation, which spanned the provinces of Gauteng and the Free State. The minister condemned the actions, saying the department was appalled by the betrayal of public trust by individuals who sought to enrich themselves through criminal conduct. ALSO READ: UIF boosts Ters budget to R2.4 billion to save jobs and businesses 'Such acts not only undermine our systems but also rob deserving South Africans of support during times of need,' Meth said. Makhele said the operation only marks the beginning. Arrests continued in various towns across the Free State and at identified locations in Gauteng. He said the operation is expected to result in the arrest of approximately 20 suspects. Internal investigations and disciplinary action The minister confirmed that the department is fully cooperating with the police and other law enforcement agencies. Meth said officials will launch internal investigations and disciplinary action against implicated employees. 'We commend Saps [South African Police Service] for its professionalism, and we will leave no stone unturned in dealing with fraud and corruption in the department, its funds and entities,' she said. ALSO READ: UIF commissioner Teboho Maruping challenges suspension amid disciplinary processes over R5bn Thuja deal 'The department is reviewing its internal controls and will intensify risk management, fraud prevention and system audit processes across all its operating environments.' Lieutenant General Baile Motswenyane, the Saps' Free State provincial commissioner, praised the team for their commitment and precise operation execution. Motswenyane said it's essential that those who take advantage of government systems for their own financial gain be held responsible for their conduct. Take advantage of government systems 'I applaud our investigators for their tireless efforts and unwavering commitment to justice. This case serves as a warning that crime does not pay and that we will continue to dismantle criminal networks wherever they exist,' said Motswenyane. The suspects are scheduled to appear in the Bloemfontein Magistrate's Court on Monday. Investigations are ongoing, and more arrests are imminent. ALSO READ: Call for intervention in 'horror show' at Compensation Fund and UIF 'Let this be a strong warning: unethical conduct will not be tolerated. We will ensure accountability and transparency in our operations. Crime will not go unpunished,' Meth said.
The Citizen
03-07-2025
- The Citizen
Free State police close in on UIF fraud suspects
Police anticipate arresting as many as 20 suspects in connection with fraudulent UIF payouts. Free State police on Thursday arrested a Bloemfontein Labour House office manager who is believed to be a key role player in facilitating an operation involving fraudulent Unemployment Insurance Fund (UIF) payments. The 42-year-old's arrest follows an intense investigation by Crime Intelligence into allegations of fraud and corruption within the Department of Labour. It forms part of a takedown operation executed in Bloemfontein, Bethlehem and in Gauteng. Intense multi-unit operation Provincial police spokesperson Brigadier Motantsi Makhele said members of the Provincial Organised Crime Unit acted on intelligence-driven information, supported by Crime Intelligence, the Tactical Response Team, Public Order Police, and the Mounted Unit. 'The starting point was at the Labour House in the Bloemfontein CBD where the arrest of one of the first persons of interest took place,' Makhele said in a statement. 'A sophisticated scam' 'This comes after months of meticulous investigation into a sophisticated scam involving the fraudulent claims of [UIF] payments,' he added. Makhele said the masterminds behind criminal activity allegedly recruited unsuspecting individuals and used their personal information to register fictitious companies. These companies then allegedly submitted false claims to the Department of Labour. The fraudulently obtained funds were shared among the recruiters – or runners – and, in some cases, with the person whose identity was used in the company registration. ALSO READ: UIF commissioner Teboho Maruping challenges suspension amid disciplinary processes over R5bn Thuja deal 'As estimated, the department might have suffered a loss on more than R1.5 million,' Makhele shared. Ongoing operation in the Free State and Gauteng He said the takedown operation, which began early on Thursday morning, marks only the beginning as arrests continue in various towns across the Free State and at identified locations in Gauteng. Police expect to arrest 20 suspects through the operation. Once arrested, the suspects are expected to appear before the Bloemfontein Magistrate's Court on 8 July 2025. Crime doesn't pay Provincial police commissioner Lieutenant General Baile Motswenyane said the case serves as a warning that crime does not pay. She said police will continue to dismantle criminal networks wherever they exist. 'It is high time that those who exploit government systems for personal enrichment are held accountable for their actions,' Motswenyane said. 'I applaud our investigators for their tireless efforts and unwavering commitment to justice.' NOW READ: UIF boosts Ters budget to R2.4 billion to save jobs and businesses
