This will be done through verifying whether the Covid TERS funds reached the intended beneficiaries at the right time as well trace whether the funds were not abused and misused by the employers.

On Tuesday 27 September 2022, the Unemployment Insurance Fund (UIF), along with the Department of Employment and Labour, held a media briefing discussing updates on TERS.

One of the key points of discussion was the UIF’s #FollowTheMoney Project.

“We have paid R62 billion to more than 200 000 employers, some of the employers misused the money. Hence, we are following the money. We are following each and every cent,” said Smiso Nkosi from the department.

According to Nkosi, the main object of the UIF is to alleviate every effect of poverty. Through their scheme and Covid TERS, they want to make sure that 100% of the funds reach employers and employees.

The #FollowTheMoney Project has been broken up in two phases.

 Phase one of the project entails:

 - Checking whether employers in a particular company exists.

 - Employment verification. This is to see whether employees are (still) employed by the company.

 - Verification of payments, to see whether payments made to the company have reached the intended beneficiaries.

 - Accuracy of claims to verify whether information used was not false or manipulated in any way.

In phase one of the project, the department has managed to verify R14 billion of the funds given to employers.

The auditors verified that 91% (R12 billion) managed to reach workers and only R9 million was recovered from those guilty of defrauding the Covid TERS.

Despite the high success rate of Phase 1, Nkosi says the UIF is still not satisfied with the results and hope to recover 100% of the funds allocated to companies.

Due to unforeseen circumstances, phase two of the project has not been implemented yet.

However, phase two is said to start soon.

According to Nkosi, currently, the department is in the process of employing more audit firms to ensure the commencement of phase two.

 On the commencement of phase two, the project will include:

 - The company must provide a payroll dating three months pre-lockdown. In other words from January – March 2020.

 - Bank statements showing TERS funds paid.

 - Confirmation from employers on how much money was paid from all TERS funds received.

Thus far, the common findings the project has found, were deductions made on the Covid TERS benefit, where employers made advance payments to employees, inflated salaries and incorrect input data such as capturing same salaries for all employees, underpaying employees who earn minimum wage, employees applying for deceased employees and employees who have resigned.

Companies that have been found guilty of non-compliance and refuse to cooperate will be referred to the Special Investigating Unit (SIU).

Should the employers not cooperate with the auditors, they will have to refund the entire Covid TERS funds, they will be blocked from any UIF service offerings and will be blacklisted from doing business with the UIF.

Nksoi warns that employers must be ready to give the UIF the requested information.

Employers have until 30 September 2022 to submit the requested information or be subjected to the consequences for failure to comply or cooperate with auditors.

OFM News/Bambatha Giko