Parliament’s Portfolio Committee on Employment and Labour has raised concerns about the recurring governance weaknesses and ICT challenges impacting entities reporting to the labour department.
It also raised alarm about irregular expenditure, weak consequence management, historical financial misstatements, procurement non-compliance and delays in systems modernisation.
The Department of Labour and Employment (DEL) oversees the Unemployment Insurance Fund (UIF); Compensation Fund (CF); Commission for Conciliation, Mediation and Arbitration; National Economic Development and Labour Council; Productivity SA and Supported Employment Enterprises.
The DEL and some of its entities briefed the committee on progress made in implementing audit action plans in response to findings by the Auditor-General of South Africa for the 2024/25 financial year.
In a statement, the committee noted that ICT-related weaknesses remain a major source of audit instability across the portfolio and require urgent structural intervention.
It also stressed the importance of detailed reporting on historical irregularities, implementation of consequence management measures and concrete plans to prevent recurrence.
The members emphasised the importance of strengthening internal investment management capacity within the UIF and CF to reduce overreliance on external institutions and improve oversight of investment decisions.
It added that there needs to be enhanced oversight and transparency regarding investments managed through the Public Investment Corporation (PIC). Members stressed that the department, UIF, CF and PIC should jointly brief it on investment performance, governance safeguards and measures to mitigate risks associated with underperforming investments.
The committee, however, welcomed efforts by the UIF to recover monies linked to COVID-19 Temporary Employer/Employee Relief Scheme irregularities through cooperation with law-enforcement agencies, including the Special Investigating Unit.
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