The Compensation Fund has noted with concern recent media reports containing allegations relating to procurement processes, governance practices and the appointment of certain officials. While the Fund respects the important role played by the media and recognises the public interest in matters of governance and accountability, it is necessary to place on record the facts regarding these allegations and to reaffirm the Fund's unwavering commitment to lawful, transparent and ethical administration.
As a public entity entrusted with administering compensation benefits and social security protection on behalf of millions of South African workers, employers and dependants, the Compensation Fund remains committed to the principles of transparency, accountability, integrity and responsible stewardship of public resources. These principles are at the centre of every decision, policy and operational process undertaken by the Fund.
The Fund categorically rejects any suggestion that procurement processes are manipulated to favour specific service providers, or that governance structures are bypassed to achieve predetermined outcomes. Such allegations are inconsistent with the governance frameworks, control mechanisms and regulatory requirements that govern all procurement and recruitment activities within the institution.
All procurement activities undertaken by the Compensation Fund are conducted within a comprehensive legislative and governance framework, including:
Procurement decisions are not made by individuals acting independently, but through established governance structures comprising Bid Specification Committees, Bid Evaluation Committees and Bid Adjudication Committees. Each committee performs a distinct oversight role and operates within clearly defined delegations and accountability mechanisms designed to safeguard the integrity of procurement processes. These controls are specifically intended to promote transparency, fairness, competitiveness and value for money in the expenditure of public funds.
The Fund further rejects allegations that bid specifications were amended to favour particular service providers or that procurement committee processes were altered improperly. It is important to note that procurement governance processes are implemented through duly authorised officials in accordance with approved policies, National Treasury prescripts and applicable legislation. The Commissioner does not participate in Bid Specification, Bid Evaluation or Bid Adjudication Committee processes, which are managed through delegated governance structures established to ensure independence and accountability.
With regard to procurement contracts and tender values that have recently attracted public attention, the Fund emphasises that procurement requirements are informed by structured demand-management processes that assess operational requirements, service delivery needs and budgetary considerations. Where procurement scope, duration or estimated values require adjustment, such changes are subjected to prescribed governance approvals, internal controls and oversight requirements before implementation.
The Compensation Fund also wishes to clarify matters relating to the appointment of the Chief Financial Officer. The appointment followed an open, transparent and competitive recruitment process consistent with public-sector recruitment standards. The position was advertised, candidates were assessed against predetermined criteria and the successful candidate was subjected to the same recruitment and assessment procedures applicable to all senior appointments within the organisation.
As part of the recruitment process, appropriate pre-employment screening and verification procedures were conducted. These processes formed part of the Fund's broader commitment to ensuring that appointments are made on the basis of competence, suitability and compliance with applicable governance requirements. At the time of appointment, all prescribed recruitment requirements and organisational processes were followed.
The Compensation Fund maintains a robust system of governance, risk management and oversight that supports accountability and continuous monitoring. These mechanisms include:
These structures provide multiple layers of scrutiny and assurance to ensure compliance with legislative requirements, sound financial management and responsible administration of public resources. They also serve to identify, monitor and address risks as part of the Fund's ongoing commitment to strengthening governance and improving institutional performance.
The Compensation Fund remains fully committed to cooperating with any lawful review, investigation or inquiry undertaken by competent oversight or law-enforcement authorities. The Fund has consistently supported efforts aimed at promoting accountability and combating fraud, corruption and maladministration wherever such conduct may arise. The organisation remains an active stakeholder in multi-agency initiatives that support coordinated responses to allegations of wrongdoing and reinforce public-sector integrity.
The Fund welcomes constructive scrutiny and recognises that accountability is a cornerstone of public administration. However, allegations should be supported by credible evidence and assessed through appropriate governance and legal channels. Individuals who possess information relating to potential misconduct are encouraged to utilise recognised whistleblowing mechanisms, governance structures or law-enforcement channels so that any allegations may be investigated thoroughly and fairly.
The Compensation Fund also wishes to express its concern regarding what appears to be a deliberate and coordinated effort to circulate false, misleading and unsubstantiated information about the organisation and its leadership. The Fund is aware that some of these allegations originate from individuals who are known to the organisation and who may be aggrieved as a result of administrative, disciplinary, governance or performance-management actions that have been taken against them.
The Fund believes that the continued dissemination of inaccurate information is intended to undermine the institution, derail ongoing reform initiatives and cast doubt on the positive changes being implemented to strengthen governance, accountability, financial management and service delivery. The Compensation Fund remains resolute in its commitment to institutional renewal and will not be distracted from its mandate of improving services to injured workers, employers and beneficiaries across South Africa.
While the Fund respects the right of any individual to raise legitimate concerns through appropriate channels, it rejects the use of anonymous allegations, misinformation and media speculation as tools to undermine lawful governance processes and organisational transformation efforts. The Fund encourages anyone in possession of credible evidence of wrongdoing to utilise established governance, whistleblowing and law-enforcement mechanisms so that such matters may be properly investigated and addressed.
The Compensation Fund remains steadfast in its mission to serve injured workers, dependants and employers across South Africa. The organisation will continue implementing measures that strengthen governance, enhance service delivery and protect public resources while upholding the highest standards of integrity, accountability and transparency.
For media inquiries, please contact:
Teboho Thejane
Departmental Spokesperson
082 697 0694/ teboho.thejane@labour.gov.za
Website: www.labour.gov.za
-ENDS-
Issued by: Department of Employment and Labour
© 2019 - The South African Department of Employment & Labour
