The Congress of South African Trade Unions (COSATU) is deeply concerned by the worsening crisis at the Compensation Fund (CF), a critical social security entity entrusted with compensating workers for injuries, diseases and death while on duty.
COSATU notes with concern the recent damning findings by the Supreme Court regarding the state of the Compensation Fund and supports the court’s call for an urgent and independent probe into its affairs. The court’s findings confirm what workers, unions, employers and the public have long experienced – the Compensation Fund is in deep distress and failing in its mandate.
Last year the Auditor-General confirmed that the Fund had received disclaimer audit opinions for 12 consecutive years. Historical audit failures continue to haunt the institution, with missing and incomplete documents making it impossible for the Fund to fully account for public monies or verify the revenue it generates due to poor data and record management systems.
Equally alarming is the apparent absence of consequence management despite repeated failures to address audit findings and governance shortcomings. Reports presented before the Board have highlighted widespread fraudulent activities within the Fund, with many allegations pointing to internal wrongdoing involving employees. COSATU is deeply disturbed that despite the seriousness of these allegations, there haven’t been any attempts at holding the culprits accountable – criminally or otherwise.
The Federation is also concerned about the severe capacity challenges facing the Compensation Fund. Critical management and technical positions remain vacant or occupied in acting capacities for years on end. Key vacancies in audit coordination, financial misconduct investigations, ICT assurance and data governance continue to undermine the institution’s ability to function effectively. Skilled managers are reportedly leaving due to salary concerns and deteriorating working conditions, further weakening the Fund’s capacity.
Workers continue to bear the brunt of these failures through unacceptable delays in the processing and payment of claims. Thousands of injured workers are forced to wait for benefits because of administrative failures, rejected payments and system inefficiencies linked to outdated and vulnerable IT infrastructure. The Fund’s systems are reportedly often offline at labour centres and on online platforms, creating long queues, frustration and hardship for workers seeking assistance.
COSATU is further alarmed by reports regarding the unsafe state of Delta Heights building, which houses the Compensation Fund. Despite millions reportedly being spent on renovations and refurbishment, the building remains unfit for occupation by workers and the public, with ongoing structural concerns. The Federation calls for full transparency and accountability regarding this property.
The current governance model of the Compensation Fund is inadequate. COSATU believes the Compensation Fund Board must be empowered with meaningful authority instead of remaining merely advisory. The long-delayed amendments to the Compensation for Occupational Injuries and Diseases Act (COIDA) must be finalised to strengthen governance, accountability and oversight.
The Federation also supports calls for the Compensation Fund to be unbundled from the Department of Employment and Labour and restructured into an independent entity with the necessary autonomy and operational capacity. Such reforms are necessary to improve governance, strengthen accountability, modernise systems, combat fraud and ensure efficient service delivery to workers and employers.
COSATU calls upon the Minister of Employment and Labour, Ms. Nomakhosazana Meth, to urgently intervene to stabilise the Compensation Fund, implement the recommendations of the courts and the Auditor-General, root out corruption and restore the institution to full functionality.
Workers deserve a Compensation Fund that is efficient and capable of compensating workers and their families timeously when they injured, fall ill or die at work.
Issued by COSATU
Solly Phetoe (General Secretary)
082 304 4055
OR
Zanele Sabela (COSATU Spokesperson)
Mobile: 079 287 5788 / 077 600 6639
Email: zaneles@cosatu.org.za
