SACCAWU supports the calls by Cosatu for the Department of Employment and Labour to scrap the questionable investment of R5bn by UIF to Thuja Investments and calls on current parliamentary oversight bodies to pay tighter scrutiny to UIF and Compensation Fund

SACCAWU is equally dismayed by the handling of the two funds (UIF and Compensation Fund) under the auspices of the Department of Employment and Labour. In the same vein SACCAWU wishes to commend the Minister of Labour for moving with haste in suspending the purported awarding of a R5bn Investment to Thuja investment.

However, SACCAWU has noted with concern that these funds have not tabled their annual reports for the 2021/2022. Parliament is duty bound to exercise its oversight over these entities and the department and its entities must comply with the requirements by this body composed of elected representatives. We call on the Standing Committee on Public Accounts (SCOPA) and the Portfolio Committee of Employment and Labour to exercise their oversight over the department and its entities without fear or favour. As the labour movement, and Cosatu in particular, will be watching with hawk eyes the tabling of these two outstanding reports to SCOPA on the 31st of March 2023.

It is also the duty of the Advisory boards of these two funds to exercise their fiduciary duties and make sure that they see to it that these funds are utilized prudently with minimal or zero wastage and for the purpose they are meant for. These are funds that are meant to provide relief to those workers that temporarily loose employment, act rehabilitation medical care of workers who get injured; and we cannot overemphasize their importance in the development of our labour market for a more productive and healthier workforce.

It is therefore concerning to read reports that these funds are in distress only on the account of bad governance such as, negative reports on UIF investments, delays in implementing the follow-the-money project with respect to the Covid-19 Temporary Employer/Employee Relief Scheme, the late submissions of annual financial statements, UIF liquidity, poor customer experience and the UIF’s image.

The labour movement calls on the boards of these funds and the minister to take a closer look at the whole investments strategy of these funds and make sure that monies are invested in the right instruments that can yield benefits for workers and are able to ameliorate the challenges posed by unemployment and poverty and move sustainable developmental path. This will not happen without rooting any semblance corruption in these institutions.

Lastly, the labour movement calls on the criminal justice system to recover the monies stolen and convict those that are responsible for stealing and embezzling from these funds.

 ENDS

All media interviews to be addressed to:

Mike Tau

2nd Deputy President

SACCAWU

Maduna@saccawu.org.za

(011) 403 8333

079 890 0919

OR

Mduduzi Mbongwe

Deputy General Secretary

South African Catering and Allied Workers Union (SACCAWU)

(011) 403 8333

082 336 5146

noel@saccawu.org.za