Nearly 4.4 million people who depend on the Unemployment Insurance Fund’s (UIF) temporary relief scheme amid the Covid 19 pandemic will now have to wait until at least next week for their June payout.
System problems mean the UIF cannot accept the June applications for the Covid19Ters payouts at this time.
However, in a statement the UIF guarantees that the Covid19Ters arrears for April, May and June will be paid.
The Covid19Ters only apply for those three months, even for industries that still couldn’t re-open their doors, such as many places to stay and entertainments and gyms.
UFO Commissioner Teboho Maruping says in a statement claims that are still being submitted for the three months will be paid out until a cut-off date for filing is announced.
Claims for June opened on June 23, but had to close again after technical problems with user profiles surfaced. Maruping ensures that people’s personal information is secure.
The UIF has called for external assistance but does not want to reopen applications until the system is completely stable.
In May, an fiber-optic cable broke, weakening the UIF’s systems.
“I apologize to employers and employees for further delays, but we work continuously to resolve the issue. We expect our tests to be completed by Friday so we can reopen the system over the weekend if all goes according to plan. “
In addition to technical errors, administrative problems with the Covid19Ters have been ongoing since its inception.
According to the Neasa’s Employers ‘Regular Survey, 19% of employers’ employees have still not been paid for April, and of those paid, only 56% think they have been paid in full. For May, 42% have not received any money yet, and of those paid, only 52% think they have been paid in full.
The UIF says it has already paid almost R28bn to employees since April 26 as part of this scheme.
The UIF says there are still 965 751 employers who have not provided the correct information for employees. Thus, payments worth R4.2 billion could not yet be made.
Employers, in turn, are full of the problem with the UIF itself. Solidarity is threatening a lawsuit over the problems.
Fraud and corruption also prove to be a huge problem. The UIF has detected 75 cases of possible corruption with the payment of the Covid19Ters money, Employment and Labor Minister Thulas Nxesi said last week.
In one incident, R5.7 million was paid into one person’s bank account on May 14, which it quickly distributed to about 28 bank accounts before the error was detected.
Only R3,3 million of the money could be recovered in the meantime.
