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Compensation Commissioner Assesses Progress

by lloyd last modified 2009-03-17 17:42

Compensation Commissioner Assesses Progress

Released by Department of Labour on 21 August 2008

Despite the challenges facing the Compensation Fund, measures are in place to keep the service delivery vehicle moving.

This is the assurance from the Compensation Fund Commissioner, Mr Shadrack Mkhonto.

In his assessment of the performance of the Fund for the past financial year 2007/08, the Commissioner has reflected on some of the challenges facing the organization as well as improvement measures that are in place.

A detailed explanation of these matters is contained in the Annual Report for the 2007/08 financial year to be tabled by the Minister of Labour in parliament next week.

The Report reflects on a number of functions of the Fund in terms of processes in the administration of the Compensation for Occupational Injuries and Diseases Act of 1993, as amended.




Weaknesses that have been identified in the report are attributed to a number of factors, including:


§          Poor management that has characterized the Fund in the past;

§          Inadequate human resource capacity, in particular at the middle and senior levels.

§          Insufficient documented financial policies and procedures in particular.

§          Information Technology Systems that do not talk to each other.

§          A high uptake on the employee initiated severance packages.


This adverse environment has also impacted negatively on the turn-around time in the claims environment and created a degree of backlogs in that area.

Corrective Action

Within the context of these challenges, a wide-reaching recruitment drive has been initiated, and this has been coupled with fast-tracking the implementation of the decentralization process. Policy matters are also under review so as to create an environment that should overhaul the situation.


A total of 64 000 new employers were registered on the database, which brings the total to 387 000 employers who are registered.

A total of 239 893 new compensation claims were processed, and paid. This includes some of the 209 830 claims that were registered during this financial year.

A total of 537 855 workers applied and received benefits totalling R230 239 million compared to R261 827 million in the previous year, a decrease of 13.72%.

A total amount of R1 573 billion was paid in benefits.

Our assets have experienced a minimal growth from R16.73 billion in 2006/07 to R18.30 billion in 2007/08, a growth of 9%. This growth was achieved amid the challenges indicated above.  

With regards to claims processing, the Fund has experienced a decrease in the number of claims paid from R1.62 billion in 2006/07 to R1.51 billion in 2007/08. This is a decrease of 7% resulting from delays in submission of bank details by beneficiaries. In 2007/08 the Fund moved away from a cheque payment method and as a result most beneficiaries were slow in submitting completed bank details to ensure direct payment into beneficiaries accounts.

“ We are requesting and urging our clients and stakeholders to submit up-to-date banking details so as to assist us to fast-track the payment of claims,” the Commissioner says.

However, in terms of the actual total number of claims processed during this financial year, the figure stands at 777 320 for Medical Claims with a monetary value of R1 287 188 000. The total number of benefits processed during this financial year was 335 345 with a monetary value of R652 466 698.

The Fund also experienced a growth in revenue of 19% and this could be attributed to an increase of 19.8% of the number of registered employers.

Enquiries: Page Boikanyo

082 809 3195

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