Companies that received money through the Covid-19 Temporary Employer-Employee Relief Scheme (Covid-19 TERS) can expect a knock on their doors from forensic auditors soon.
These auditors will be examining companies’ financial records to check the authenticity of their claims and verify if the money was paid over to workers Marsha Bronkhorst, Acting UIF Commissioner, explains.
The Covid-19 TERS Relief Scheme was established to assist employees who lost income during the lockdown period. Since March just over R54 billion has been paid in 12 757 287 payments through more than 1 million employers.
Bronkhorst said the Unemployment Insurance Fund’s (UIF) has appointed seven companies with auditing, accounting and forensic investigation expertise to “follow the money” for all Covid-19 TERS payments.
The companies will assist the UIF to recoup monies owed by employers and report fraud to law enforcement institutions.
“They will also help with recovering UIF contributions, including interest and penalties owed to the fund due to new employees being declared during the national lockdown,” Bronkhorst said.
The auditing firms started their work at the start of December, and employers who benefited are urged to prepare the following information either manually or electronically:. UIF Covid-19 TERS application pack;. Bank statements relating to Covid-19 TERS application;. Each employee file; and. Payroll report from 1 January 2020 to July 2020.
Bronkhorst said the fund is serious about eliminating fraud given the plethora of complaints and allegations that some companies were stealing the money that was intended for their workers.
“Over the past few months we have seen with great disappointment that some companies received the Covid-19 TERS benefits, but failed to pay it over to their workers,” she said. “There are also allegations that employers were paying part of the money, and not the full amount, as well as companies using the money for something else other than the intended purpose.”
Bronkhorst urges that from the beginning of the Covid-19 TERS Benefit payments, UIF has always been cognisant of possible risks of fraud, hence the plan to “follow the money” was always there.
“Our intention, as the UIF was always to support companies, workers and our economy during the lockdown, but the plan was always to conduct a comprehensive audit of all the payments.
“I am therefore urging all companies and employers who have benefitted from Covid-19 TERS to cooperate with the forensic auditors and supply all the required information within the specified time frames and failure to comply will lead to legal action.”
