Unemployment Insurance Fund (UIF) Commissioner, Teboho Maruping, has sent a stern warning to KwaZulu-Natal companies, which failed to cooperate with forensic auditors.
“We will freeze your company bank accounts and assets to enforce cooperation with our audit,” Maruping said.
Maruping issued the warning to company directors after several companies, which benefited from COVID-19 Temporary Employer-Employee Relief Scheme (TERS), failed to cooperate with forensic auditors, who had made arrangements prior to visiting their premises to verify if monies were paid over to workers.
Maruping joined the forensic auditors this week and was left frustrated by several seemingly errant companies that were non-cooperative and evasive.
He said he was dismayed by the treatment he received along with auditors during their visit to the companies in and around Durban.
“It was disheartening to find a well-established company in Pinetown — with whom we made prior arrangements for the audit — not ready to cooperate with us. At another company also based in Pinetown, we were locked out…
“This kind of behaviour is the worst form of disrespect to workers because it is their hard-earned money we are trying to audit and account for here. The fact that this is happening during Workers’ Month makes it a spit in the face of the working class, and we won’t stand for that,” said Maruping.
KwaZulu-Natal businesses received R9.2 billion of the total R62 billion COVID-19 TERS allocation.
The money was intended to be paid over to workers to sustain them during and after the COVID-19 lockdown periods.
Maruping warned that the UIF will not hesitate to refer cases to the Hawks and Asset Forfeiture Unit (AFU) of the National Prosecuting Authority (NPA) to freeze bank accounts and assets of non-cooperating companies.
He also called on company directors to use the audit opportunity to demonstrate good corporate citizenry, and to exonerate themselves from any suspicion of wrongdoing.
The Commissioner said the UIF has intensified work done on the ‘Follow the money’ project, with the aim of accounting to the Auditor-General of South Africa, as well as other assurance, oversight and governance structures.
“Last year, the UIF deployed more than 360 auditors from seven companies with auditing, accounting, and forensic investigation to assist with the ‘Follow the money’ project. Since the beginning of 2022, more than 15 company directors have been criminally prosecuted for COVID-19-related fraud.
“The longest direct imprisonment sentence remains a period of 135 years, which was meted out to bookkeeper Lindelani Gumede after he was found guilty of 32 counts of COVID-19 fraud, amounting to R11 million,” Maruping said. – SAnews.gov.za
