Despite auditor-general’s negative findings, the Compensation Fund is upbeat
Commissioner Vuyo Mafata says the Compensation Fund is ‘turning the corner and service delivery has improved immensely’
Compensation Fund commissioner Vuyo Mafata is confident that the fund is turning the corner, but this did not prevent the auditor-general from issuing yet another disclaimer on the fund’s 2016-17 financial statements because there was insufficient audit evidence on which to base an audit opinion. The fund, which compensates workers who are injured or made sick at work, has been plagued by inefficiencies, backlogs and unpaid claims going back many years. Among the deficiencies noted in the financial accounts were that insufficient records were kept of revenue, and that internal controls over records of benefits paid were inadequate. Material losses amounting to R2.4bn were incurred as a result of a write-off of irrecoverable debtors, and irregular expenditure amounted to R762.4m. "Management did not maintain proper accounting records and adequate controls over assessment of revenue and debtors," the auditor-general’s report noted. "This resulted in revenue being incorrectly recorded ...
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