The latest disclaimer by the Auditor-General in his report on the Compensation Fund (CF), tabled in Parliament this week, confirms the evidence of complaints to the Democratic Alliance (DA) that the fund is in serious disarray.

According to the Auditor-General the extent of the mismanagement of the CF ranges from a complete breakdown of internal controls and a filing system in complete disarray, to non-compliance with applicable legislation. This sorry state of affairs at the CF is leaving thousands of vulnerable beneficiaries out in the cold.

The Compensation Fund is supposed to assist employees who have had the misfortune of contracting an occupational disease or suffering an injury while on duty. The neglect and mismanagement of this fund causes direct harm to ordinary South African workers - especially those who cannot afford private sector disability insurance and are therefore most vulnerable.

Complaints that the DA has received indicate that it is not only individual claimants who are disgruntled with the CF; service providers have also not been spared. Some medical practitioners have resorted to demanding cash upfront from employers of injured staff, while others are flatly refusing to treat Compensation Fund patients in order to avoid the risk of late payment or no payment at all. One medical practitioner wrote to the DA saying:

As a medical practitioner in sole private practice, I find myself unable to submit directly to the Commissioner for medical expenses for injuries on duty, because of a poor track record of payments. Bills are paid on average 6 months to 3 years after submission and some are paid in part and some not paid at all. I have therefore had to change my procedure. Companies that wish me to see their "injuries on duty" pay me for my service and they then submit all paperwork and invoices to the Compensation Commissioner.

Common among the complainants is a poor track record of payment; one legal consultant highlighted an unresolved case dating back as far as 1994. Generally, those lucky enough to have received payment had to wait for at least a year to get their first installment. Complaints of this nature further confirm the failure of the CF to act as an adequate safety net for thousands of people who have been rendered medically unfit to work.

What is also particularly worrisome is the lack of political will that the Labour Minister has displayed in this regard, and the absence of purposeful action to resolve the fund's long-standing problems. In 2005 the Compensation Fund Strategy 2006 - 2009 was introduced to improve customer satisfaction through service and efficiency. Two and a half years down the line little has changed. The time has come for the Department to undetake a forensic investigation of the Compensation Fund. The Commissioner and his top staff must be held accountable for letting down vulnerable workers in this way.

The DA further contends that the Compensation Fund should be put out to tender. Let the best bidder run it in a professional manner, to the benefit of injured and sick South African workers.

Statement issued by Anchen Dreyer MP, Democratic Alliance spokesperson on labour, September 8 2008