Ters payments to be honoured even after closure of applications

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The labour minister said the government is closely monitoring the liquidity of the UIF and alluded to a mass employment programme

Thousands of workers still waiting for payment from the government’s Covid-19 relief scheme will receive the money despite applications for the fund closing at the end of October, eNxesi said that as long as applications were in the system before the closing date, the Unemployment Insurance Fund , would continue to process them. But he said the fund could not continue receiving applications “indefinitely”.

“The question we need to answer is what the way forward is, when we have to deal with mass unemployment, because everyone has predicted the issue of retrenchments,” Nxesi said.Nxesi said the government’s plans to mitigate large scale retrenchments are going to be outlined by President Cyril Ramaphosa in the economic recovery plan he is expected to release on Thursday.

Nxesi said work has started to resolve the issues raised by the auditor-general . The AG is auditing all payments made from April to June — but the new controls put in place to avoid fraudulent or wrong payments were only implemented on September 21, after the Ters payments were suspended following the damning report.

While the Special Investigating Unit is looking into allegations of fraudulent payments, Nxesi said the UIF has also started its own programme to “follow the money”, tracking every payment made by Ters.

 

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