# UIF SHOULD FIX SYSTEM

- Link: https://dearsouthafrica.co.za/2020/06/29/uif-should-fix-system/
- Published: 2020-06-29T10:58:07+02:00
- Author: dearSA

![DearSA Parliamentary media release](https://cdn.dearsouthafrica.co.za/wp-content/
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## UIF SHOULD FIX SYSTEM THAT MAKES IT VULNERABLE TO FRAUD – SCOPA

The Standing Committee on Public Accounts (Scopa) has told the Unemployment Insurance
Fund (UIF) to fix the shortcomings in the information technology system they are
using for the disbursement of funds during the Covid-19 lockdown period.

The shortcomings of the system have made the UIF vulnerable to fraud and corruption
from employees and employers who have made false claims amounting to millions of
rands. The committee has asked the UIF to submit a detailed plan on its migration
to a better system that will avoid such loopholes that open it up to fraud.

Scopa has also asked the fund to submit a detailed report on the 16 cases where 
there were overpayments and erroneous payments. The committee hopes that those that
are found to be involved in the fraudulent payments will face consequences. The 
committee is aware that the Hawks are investigating the R5.7 million paid into an
incorrect bank account. Scopa has asked the UIF to submit a detailed report on this
issue, that it can use as a briefing note, by Wednesday, 1 July 2020.

Scopa welcomes the disbursement of over R25 billion to four million workers who 
have been negatively affected by the Covid-19 pandemic. The committee, however, 
is concerned over the administrative delays in the processing of some disbursements,
which have left almost one million employees in the lurch. Scopa believes that there
should be a general overflow of communication between the UIF and the workers.

Scopa is aware that the Auditor-General is conducting a special audit for the Covid-
19 pandemic, whose outcomes are expected to be released in August. The Auditor-General
will cover ordinarily what Scopa would have focused on. The Auditor-General’s special
audit will test their implementation of preventative controls, will detect and audit
high-risk items, table special reports in Parliament, and will outline consequence
management. Therefore, to avoid the duplication of resources, Scopa will await that
process for the outcomes of how the UIF spent funds during this lockdown period.

**ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON
OF SCOPA, MR MKHULEKO HLENGWA.**