not pretty reading

In a recent fin24 report, Auditor General Terence Nombembe stated that the Compensation Fund remains in financial shambles after failing another audit.

The AG was responding to the Fund's 2011/12 annual report tabled by Labour Minister Mildred Oliphant. Nombembe cited inadequate monitoring and controls at the Fund as reasons for the qualified audit opinion. He also questioned the authenticity of certain information in the financial statements.

The benefits paid by the Fund also did not match the claims lodged against it.

According to the AG, of the R2.2 bn disclosed to the financial statement, an amount of R43 m relating to the permanent disability and medical claims could not be reconciled to the benefits claim listing.

The report also mentions that 71 cases of fraud and services not rendered are being investigated by the Fund. These cases range from assessment, medical, finance, pension, registration and supply chain management.

CompSol CEO Fritz Lüttich says that workman's compensation is a basic right for South Africans and he remained hopeful that the Fund would overcome the serious challenges faced. He points out that financial management is but one aspect of a need for the Fund to improve management and process efficiencies.

"It is imperative that workman's compensation - or, what is increasingly referred to as simply IOD or Injured On Duty – works for South Africans. Not being compensated - or waiting months to be compensated – creates unimaginable hardship for the injured worker. Workman's compensation has a very important role to play in our country - it's about time that we recognise this, resourced the Fund appropriately and delivered the service paid for."

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.