Scopa chair calls for Compensation Fund bosses' heads

Parliament’s standing committee on public accounts (Scopa) has asked employment and labour minister Thulas Nxesi to say why Compensation Fund bosses must keep their jobs. 

This comes after the fund received successive disclaimer opinions from the auditor-general under the leadership of director-general Thobile Lamati and commissioner Vuyo Mafata.

In the 2020/2021 financial year, the AG reported that effective steps were not taken to prevent irregular, fruitless and wasteful expenditure at the fund because of non-compliance with procurement procedures.

MPs slammed Lamati and Mafata for their “inability” to turn around the entity and achieve a clean audit outcome after more than seven years.

“To apportion blame to the DG and commissioner without also reflecting on the context in which we find the institution and the context in which the disclaimers took place, it will be wrong of me not to indicate that context,” Lamati responded.

“Because, if I had inherited an institution that had all the systems in place, that was properly structured, it would mean that whatever happens, I must take responsibility for it.

“However, all these years that I have been in this department, I have presented a plan to the committee. Some problems that have been plaguing the fund, if we had not taken the steps we have taken, this institution would have closed down.” 

The disclaimer did not paint a “real picture” of the situation.

“It gives the impression that nothing is being done, but a lot of work is being done,” said Lamati.

DA MP Alf Lees said the “excuses” made by the fund were outrageous and unacceptable.

ANC MP Nokuzola Tolashe echoed these sentiments, saying the committee was being taken for a ride.

Scopa chair Mkhuleko Hlengwa said there had been a collapse of systems which, seemingly, would not be fixed soon.

“As things stand now, the Compensation Fund is at the bottom of the bottom, literally scraping. There is no improvement, there is no information, we are relying on hearsay. To say we are unhappy would be an understatement. 

“There’s an absolute collapse of systems at the Compensation Fund and judging by the attitude and outlook, there is no redemption in sight. To say it is in ICU would be an understatement.”

Nxesi wasn't at the meeting, as he was in Botswana, but Hlengwa called on deputy minister Boitumelo Moloi to ask Nxesi to provide reasons why Lamati and Mafata should keep their jobs within 14 days of his return from Botswana.

Lamati and Mafata would be given an opportunity to give reasons why they should remain in their positions. The committee will then make a recommendation to parliament.

Moloi said she understood MPs' frustration and would ensure the concerns were responded to. 

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