• Labour Wrap

    Terry Bell says the labour movement in SA is currently in a state of confusion.

  • Will the NPA stand up?

    Solly Moeng wonders if the NPA head will reinstate criminal charges against president Zuma.

  • Commodity currency

    Jac Laubscher asks if the true exchange rate of the rand is really a cue from commodity prices.

All data is delayed
See More

Fund denies claims over abuses

Jul 11 2011 20:13
Johannesburg - The Compensation Fund on Monday rejected as "mischievous" allegations that workers at the department of labour are being victimised while corrupt practices flourish.

"We vehemently reject the allegations. I have no doubt in my mind that the story may have its roots in ill-informed and disgruntled internal source or sources," said fund commissioner Shadrack Mkhonto, reacting to a Sunday World report.

The Sunday newspaper quoted an unnamed source saying "senior management does as it pleases… as if they are running a spaza shop".

It said documents in its possession indicated that some senior managers were promoted without any interviews being conducted.

Other claims were that some employees who were "persecuted by their seniors for no apparent reason" and axed, were reinstated after turning to the CCMA and Labour Court.

Labour Minister Mildred Oliphant has since referred these accusations, which she said warranted a thorough investigation, to the director-general as most of them were administrative.

The minister said she viewed the allegations in a serious light.

Urging those with information to back up these claims, Mkhonto said the commission recently dismissed 16 employees for offences related to financial misconduct amounting to millions of rands.

Meanwhile, two doctors appeared in the Pretoria Commercial Crimes Court on Tuesday on charges of defrauding the fund.

"I am convinced that the story has been leaked by elements who are concerned that we might be coming for them soon. We will stop at nothing to root out corruption at the fund," Mkhonto said.

He said some of the fund's service providers were also allegedly ripping off the fund of millions of rands, with one company pocketing R70m from the department in less than a year, from July 2010 to May 2011.

Mkhonto confirmed that the fund had indeed appointed specialist consultants to assist the fund improve service delivery.

He further pushed aside claims of appointments without interviews, saying all appointments were "duly processed and are open to scrutiny".

"The department of labour has a recruitment and selection policy and the fund is bound by that."


Read Fin24’s Comments Policy

24.com 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
1 comment
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

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

Voting Booth

The drop in inflation:

Previous results · Suggest a vote