Business Unity South Africa and trade unions have raised concerns about alleged dysfunction and governance failures at the Unemployment Insurance Fund. The UIF says withdrawing from Nedlac structures does not promote engagement, constructive dialogue and adherence to institutional processes.
The UIF (Unemployment Insurance Fund) insists meaningful governance reform is possible inside established statutory structures and not through disengagement from the institutions created to facilitate oversight and social dialogue, such as Business Unity South Africa’s (Busa) recent disengagement from the UIF Nedlac structures.
The UIF, which operates under the Department of Employment and Labour, on Friday responded to Busa’s withdrawal from Nedlac UIF structures. The business representative organisation had also joined several trade unions in calling for the UIF and Compensation for Occupational Injuries and Diseases Fund to go under administration or new management - the trade unions had cited corruption and dysfunction as the main reasons.
Business Unity CEO Khulekani Mathe said last week they had withdrawn from the UIF structures following six years of “sustained effort” to help reform problems at the UIF. He also said that a forensic investigation was needed at the UIF to assess the “legality and appropriateness” of all fund expenditures. “The current situation is unsustainable,” he said.
