Concern about Compensation Fund decentralisation

Nkosinathi Nhleko
Nkosinathi Nhleko,
DG of the Department of Labour
Fritz Lüttich
CompSol CEO Fritz Lüttich

The Department of Labour has taken the necessary steps to get their house in order.

According to the Department's Director-General Nkosinathi Nhleko, this involves the implementation of monitoring systems to identify corruption and decentralising its operations.

The primary reason for the decentralisation is to "ensure that all South Africans enjoy access to Compensation Fund services" and that all of these actions form part of changing the perception that "the Compensation Fund was a charity that was waiting to be ripped-off".

In reaction to this statement, CompSol CEO Fritz Lüttich said he understands the Compensation Fund's rationale regarding decentralisation but believes that this brings severe logistical and training challenges into play.

"We've seen how the Compensation Fund officials in one province interpret the legislation differently to those in another province, placing medical service providers in a very precarious position as they are not sure how to bill for their IOD services," says Fritz. "It often happens that an account might be paid in one province, but the exact same type of account gets rejected in the other province."

CompSol welcomes the initiative from the Department to take charge with regards to fraud and corruption. "We are aware of some officials who were easily corrupted by the lure of making a quick buck and helping unscrupulous service providers that refuse to follow the rules," says Fritz. "In the long run this type of behaviour is not sustainable and hampers the delivery of service to the people. We therefore welcome any step that improves the current situation."

While Fritz is optimistic about the Compensation Fund's resolve to weed out corruption, he remains concerned about the impact that a lack of trained staff and relevant systems will have in a decentralised model.


Step 1 - Employer logs an injury on the CompSol system.Step 2 - Medical service providers are notified about the injured employee.Step 3 - Medical service provider logs all details on CompSol system and gets paid.