UIF pays almost R22m to workers affected by riots two years ago

The Unemployment Insurance Fund (UIF) has paid out R21.8m to more than 6,000 workers affected by the July 2021 unrest, which swept through KwaZulu-Natal and Gauteng. 

UIF commissioner Teboho Maruping said on Wednesday that the Workers Affected by Unrest (Wabu) temporary financial relief scheme was established to assist those whose workplaces were closed due to the unrest, resulting in workers receiving partial remuneration or no pay. 

“The temporary financial relief scheme was created over and above the special Covid-19 TERS relief scheme, which was implemented in March 2020 and disbursed R64bn to workers across the country. 

“Since August 2021, the UIF received more than 2,000 Wabu applications, but approved only 165 after physical verification by labour inspectors of the department of employment and labour.” 

Maruping said employers were required to apply on behalf of affected workers and had to comply with qualifying conditions, which included that the closure of the business was directly linked to the destruction, damage or looting. 

“The UIF is very pleased that we have been able to assist workers each time we were called upon. As a fund responsible for providing social relief, our duty is to ensure workers are able to take care of themselves and their families in difficult times,” he said.

He assured the public that businesses that benefited from the Wabu scheme were not immune to scrutiny and were being audited to ensure funds were paid to employees. 

“I have instructed our ‘follow-the-money’ auditors to knock on the doors of all businesses who received funds for their employees. To date, we have visited 97 companies and we will continue to verify payments until all funds are fully accounted for,” said Maruping. 

The auditors found 74 of the 97 audited employers were operating due to the UIF intervention and 76% of jobs were saved.

One company is being liquidated, another is suspected of fraud due to non-availability of records and one changed ownership. 

Payments of Wabu funds were made directly into verified workers’ bank accounts, unless the UIF commissioner specified conditions for payments to be made into the employer’s account. 

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