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Compensation Fund (CF) tells Portfolio Committee of progress on its Action Plan


The Department of Labour’s Compensation Fund briefed the Portfolio Committee on Labour on progress made with regard to the implementation of its  action plan recorded on November last year.


Vuyo Mafata, CF Commissioner, gave responses to the committee on highlights which include:


1. Financial Administration

  • Implementation of Employer Discount: A total of R211 million has been credited back to employer accounts.

  • Correction of Interest and Penalties: This has enabled the fund to correct R2, 4 billion that had been credited as income erroneously during prior years.  

  • Improving Debt Collection & Completeness and Accuracy of Revenue: The project was completed during March 2016 with the correction of key-off on debtors’ transactions. This project was linked to the Interest and penalties project as the implementation of both projects enabled the Fund to correct the debtors’ balances.

  • Financial Policies implemented: The Fund has developed a total of 20 new policies that were approved in November 2015 and are being utilised.

  • Capacitating the Chief Directorate Financial Management and reduce dependency on consultants. The Fund has created a position of Project Manager: Financial Management which will be used to provide support to the Finance unit in dealing with the accounting issues and implementation of Auditor General South Africa (AGSA) Findings. In addition to the creation of the post, three Senior Managers in Finance have been replaced in an effort to strengthen the capacity within the Fund. Managers replaced are in the Financial Reporting, Revenue Management and Financial Control unit. 


2. Customer Focus and Service Delivery Improvement

  •   Effective Supply of Chronic Medication to COID Patients: A total of 552 new chronic medication clients are enrolled into the programme, and the existing clients are enrolled as their existing prescriptions expire.

  •   Rehabilitation and Return to Work Policy Strategies: A Rehabilitation Strategy has been developed in order to implement the Rehabilitation policy. There are discussions taking place with public health care institutions to pilot the implementation of a rehabilitation pilot project.

  • Deal effectively with Post Traumatic Stress Disorder (PTSD) cases. A panel consisting of experts in the medical field was appointed by the Minister to assist the Fund in dealing with these cases. The panel has developed a Post-Traumatic Stress Disorder Policy that will be published during Quarter 2 of 2017/18. This policy will provide direction on how these claims are to be adjudicated making the process quicker and easier.


3. Internal Business Process and Administration

  •   Core business value chain: A new reorganised structure in the Fund comprising of three core business units, Compensation Benefits and Pensions, Medical Benefits and Rehabilitation & Orthotic Services. Processes are under way to implement the structure and fill the posts with the relevant specialised skills.

  • Improved rate of processing compensation benefits and medical claims: The Fund has implemented measures to improve the rate at which the benefits are processed and paid. In addition to the technology interventions, the Fund has appointed 90 former interns who have now been absorbed into the Fund to work on current and legacy claims that have not been attended to ensure the clients provide the outstanding information for processing of their claims.  We have put together a team that travels to the provincial offices to monitor the performance of the provinces and provide technical assistance in areas relating to claims and employer registrations. At the end of May 2017 seven medical doctors had been appointed to head up operations at Head Office, Kwa-Zulu Natal, Free State, Limpopo, Gauteng, North West and Mpumalanga and Northern Cape.  Positions of medical officers, medical case coordinators and disability managers have also been filled in the different provinces and head office.


For more information contact:

Teboho Thejane

Departmental Spokesperson

13 September 2017







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