The Unemployment Insurance Fund (UIF) has posted a R9-billion surplus, exceeding its target by R3-billion, UIF commissioner Boas Seruwe said on Friday.
“The fund has for the first time also posted a clean audit thanks to the work of hard working employees. We cannot afford to drop our guards,” Seruwe told staff, according to a statement.
“The fund need[s] to continually devise innovative strategies to do better,” said Seruwe.
The UIF is part of the labour department. Seruwe addressed staff during a visit by labour department director general Nkosinathi Nhleko.
Seruwe said the increase in the surplus was due to “tightening of enforcement and compliance activity by the department of labour”.
More companies were beginning to comply with the law.
” the fund had also taken a strategic policy decision two years ago to expose itself in the equity market … from an initial exposure of R1.3-billion the fund’s investment in equities has grown to R8-billion.
“The fund also has investments in government bonds, parastatals bonds and financial institutions.”
The UIF’s total assets were R44-billion at the end of March in 2010 and this has grown to R56-billion in March 2011. — Sapa