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Taxpayers spent R300 million on new system that broke the Compensation Fund

26 February 2020 10:44 AM
Tags:
Compensation Fund
Labour Department
Refilwe Moloto
SAP
CompEasy
Injured Workers Action Group
IWAG
Tim Hughes
South African Medical and Dental Practitioners Association
180 000 injured workers and medical practitioners are facing financial ruin, yet the Fund is sitting on R60 billion in assets.

About 1000 workers are injured on duty in South Africa each day, according to the Labour Department’s Compensation Fund’s annual report.

Yet, the R60 billion Fund hasn’t processed a single payment since October 2019 when it started using a new, electronic system – between 150 000 and 180 000 injured people (as well as employers and medical professionals) are facing ruin.

The dysfunctional SAP-based system cost taxpayers R300 million.

The Compensation Fund is compelled by law to cover the medical, rehabilitation and disability expenses of the country's injured workers, yet employers are now footing the bill despite annually contributing R9 billion to the Fund.

Concerned businesspeople have formed the Injured Workers Action Group (IWAG).

Refilwe Moloto interviewed IWAG spokesperson Tim Hughes.

The new system is called CompEasy. The irony isn’t lost on workers… Since it’s introduction a mere 1% of claims have been paid and a mere 2.8% have been processed… 180 000 workers are not receiving benefits from a fund with R60 billion in assets!

Tim Hughes, spokesperson - Injured Workers Action Group

Whilst the workers are the most disadvantaged and most vulnerable, you can imagine what’s happening to medical practitioners who are delivering services and not getting paid… physiotherapists are going out of business, the South African Medical and Dental Practitioners Association is in crisis because of this… yet this fund is sitting on R60 billion with no accountability!

Tim Hughes, spokesperson - Injured Workers Action Group

What we’re hearing in a press release – a series of denials – is that the system needs a tweak and that there are small problems with logging on. This is not the case! It’s a structurally dysfunctional system! Some would say it was dead on arrival!

Tim Hughes, spokesperson - Injured Workers Action Group

Medical practitioners who aren’t being paid are disinclined to treat… we have instances where workers have died…

Tim Hughes, spokesperson - Injured Workers Action Group

Listen to the interview in the audio below.

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26 February 2020 10:44 AM
Tags:
Compensation Fund
Labour Department
Refilwe Moloto
SAP
CompEasy
Injured Workers Action Group
IWAG
Tim Hughes
South African Medical and Dental Practitioners Association

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