Q & A with CompSol CEO Fritz Lüttich

Fritz, what were the CompSol highlights of 2012?

We were able to maintain and in fact even improve our service delivery to our Employers, Employees and Medical Service Providers - something of a miracle considering that the Compensation Fund practically stopped paying accounts since 1 October 2011.

Examples of CompSol's improvement in service delivery?

All kinds of records were broken this year:

  • We had the most number of active service providers on our books in our history
  • The highest face value turnover in any given processing month ever during November 2012
  • Our highest face value purchase from one service provider ever in one month - > R2million
  • Most staff employed ever
  • Record number of thank you letters or letters of appreciation received from our
    Employers, Employees and Service Providers ever – 47 in last three months alone.
  • 100% success rate in paying our Service Providers on time - we did not miss our 10 working day payment cycle once
  • We reduced the list of problematic accounts(queries) by about R23 million
  • We rolled out our CompSol RELAY system to over 50% of our service providers - and they are all over the moon with the results
  • We started RELAY EMS Ambulance service in PE / Uitenhage and in three months have reached patient transport levels surpassing other services that's been in operation > 13 years in the same area.

None of this would have been possible without the dedication and commitment of all our staff. To achieve these levels of results, one must acknowledge the excellence of our people and processes - in fact, our own people also develop these processes.

In recognition of this outstanding effort, the directors of Compsol have paid over R34 million to salaries, incentives, commissions, bonuses and overtime to our staff during the year.

It is a privilege and honour to work with and be associated with the CompSol RELAY and RELAY EMS staff.

A lot to be thankful for, but what concerns you?

Since the Compensation Fund implemented the new ICM / SAP system on 1 October 2011, Compensation Fund payments have practically stopped. Very few if any compensation payments were made to injured workers, almost no refunds to Employers and very little (less than 4%) of medical accounts were paid. This is a catastrophe in most people's lives.

Fortunately CompSol RELAY's associated entities were no worse off as we were able to manage most of these problems for our customers.

A major concern is that our government is making it extremely difficult for entrepreneurs to conduct successful businesses with sustainable job creation through wasting of millions of Rands of hard earned taxes which should be used for education, housing and infrastructure. And yes, somewhat ironically, government enforced racism is also impeding the economy as the most qualified / suitable applicant cannot, in most cases, be appointed due to being white.

I feel there is a great need for successful entrepreneurs to educate people about the principals of running a sustainable business that puts food on their table so that they can make an informed decision when next they vote as to which government will best succeed to develop more entrepreneurial businesses that will create more jobs for everyone.

Despite the Compensation Fund catastrophe, CompSol saw an opportunity?

For most, the current situation is most definitely a huge problem. We however saw a massive opportunity some four years ago for which we geared ourselves over the years. We built up reserves and trained our staff properly. This enabled us to take on a record number of service providers.

In turn, the service providers enjoyed sustainable cash flows at a reasonable price - with spectacular service - a winning combination for all. CompSol is synonymous with sustained cash flow and outstanding service - these two aspects of our service offering are inseparable.

CompSol in 2013?

As proof of our confidence in our CompSol staff and our beloved country, we have made a further property investment in Port Elizabeth. We plan to start building our new office block in the latter part of 2013.

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.