UIF temporarily suspends payment of Covid-19 TERS relief fund
Payments have been halted after concerns recently raised by the Auditor-General.
THE Unemployment Insurance Fund (UIF), working with the Department of Employment and Labour, has temporarily halted payments for the Covid-19 TERS relief benefits, until it addresses the system control concerns recently raised by the Auditor-General.
According to the UIF, this move will not only assist them in dealing with the gaps identified by the AG but also offers the opportunity to ensure that some of the improvements that had already been identified by the management are implemented.
The AG’s damning report earlier this month cast the spotlight on the payment of the temporary employer/employee relief scheme (TERS) and social grants introduced to provide economic relief to the vulnerable and assist employers to protect jobs.
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The AG found that the new system implemented for TERS incorrectly calculated the benefits for the first lockdown period between 27 March and 30 April by not taking into account the actual period of inactivity and the portion of the salary paid by employers, resulting in significant overpayments.
“Whilst the AG has shown us a number of deficiencies in the payment of the Covid-19 TERS benefits, I must hasten to add that many of these deficiencies had been picked up already by management. “Some had already been corrected in the June payments but we will continue to improve the systems so that it responds to needs of our beneficiaries and make the payments effective and efficient,” said Marsha Bronkhorst, the acting UIF Commissioner.
The Fund has also committed to taking several steps to address the systemic challenges concerning payments.
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