The Unemployment Insurance Fund (UIF) lost R66-million on fraudulent unemployment claims between April 2005 and March this year, the fund said on Thursday.
UIF spokesperson Kgomotso Sebetso said it is considered fraud for people to continue to receive benefits despite having secured a new job.
”We want to issue a stern warning to workers to desist from such practice and we will soon be announcing further drastic measures to curb this ongoing tendency of breaking the law.”
Sebetso warned workers it is not only against the law to continue to draw UIF benefits while employed, but such persons also jeopardise their chances of receiving any future UIF payments. He said the culprits could face up to a five-year ban.
It is employers’ duty to submit details of their workers timeously.
”Should all employers submit an accurate declaration on time to update and maintain a database of more than 7,3-million workers, the battle would be almost won. Employers must inform us on termination of service or any new addition to employment immediately that happens,” Sebetso said.
To improve on its collection rate, the fund has involved the services of the state attorneys in various provinces and third parties to assist in debt collection.
”The fund has over the past three years recovered close to R20-million with close to R9-million having been recovered in the first half of this year,” Sebetso said.
Anyone found to be engaging in fraud should be reported immediately to the UIF fraud hotline at Tel: 0800 601148, he said. — Sapa