All data is delayed
See More

Compensation fund fails another audit test

Sep 14 2012 18:03
Cape Town - The Compensation Fund remains in financial shambles, according to Auditor General Terence Nombembe (AG).

The AG cited various matters he found troubling after assessing the Fund's 2011/12 annual report, tabled by Labour Minister Mildred Oliphant on Friday.

The AG said inadequate monitoring and controls at the fund were the reasons for his qualified audit opinion.

He called into question the authenticity of certain information in the financial statements.

"I did not obtain all the information and explanations I considered necessary to satisfy myself" the AG said.

He was referring to a system used to calculate interest and debtors' penalties.

The benefits paid by the fund also did not match the claims lodged against it.

"Included in the R2.2bn disclosed to the financial statement is an amount of R43m relating to the permanent disability and medical claims that have been paid, but could not be reconciled to the benefits claims listing."

The Fund had been dogged by fraud and mismanagement allegations.

The AG says 71 cases of fraud and services not rendered by service providers are being investigated by the fund.

"The cases range from assessment, medical, finance, pension, registration and supply chain management."

The compensation fund provides financial aid to those injured at work.

*Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.



Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


With infrastructure spending having been identified as one of the key focus areas of the National Development Plan, tradesmen will continue to play a critical role in growing the South African economy through their skills.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

A 30% a month return on investment is:

Previous results · Suggest a vote