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Administrative discrepancies and attempted fraud by Labour Activation Programme (LAP) partners have delayed stipend payments for employability programme participants.

A recent review by the Unemployment Insurance Fund (UIF) highlighted opportunities for enhanced administrative accuracy. In response, the UIF is strengthening its review process for invoices and attendance records submitted by partnering companies, which is expected to improve overall efficiency. This proactive approach aims to ensure more reliable and timely distribution of stipends to beneficiaries.

Furthermore, UIF is streamlining stipend payments by implementing an electronic system and hiring short-term contractors to help process invoices. Additionally, internal capacity has been reassigned to assist the Labour Activation Programme.

Discrepancies will be closely looked into, and where necessary, investigations will be instituted to deal with suspected unscrupulous partnering companies.

The Acting Director General, Jacky Molisane, wishes to assure beneficiaries that a sufficient budget has been allocated to pay stipends for employability programmes in the current financial year and that stipends will be paid following proper procedures.

The Department is committed to ensuring that all qualifying beneficiaries receive their payments promptly and efficiently.

Ms Molisane further cautions beneficiaries against engaging in actions such as violence and vandalism to express their concerns, as these may have far-reaching consequences that could hinder their integration into the labour activation programme and the labour market. 

The Department will at all material times, ensure that the Labour Action Programme processes, are followed to the letter. Therein reserving its rights to take any party that attempt and or seek to undermine and contravene the established process, in terms of existing signed agreements. Such action will be responded to with corresponding available legal remedies.  Participants and stakeholders are reminded that the programme must remain impartial and free from external influence. Efforts to involve individuals who do not meet eligibility requirements undermine the integrity of the process and should be avoided to ensure the programme's objective is achieved without undue pressure.

For media inquiries, kindly contact: 

Teboho Thejane,

Departmental Spokesperson

Contact: 082 697 0694 / teboho.thejane@labour.gov.za

-ENDS-

Issued by: Department of Employment and Labour

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