Parliament, Wednesday, 25 June 2025 – The Chairperson of the Select Committee on Economic Development and Trade, Ms Sonja Boshoff, has raised serious concerns about the Department of Employment and Labour’s continued failure to address the structural governance collapse of the Unemployment Insurance Fund (UIF) and the Compensation Fund (CF).
The department briefed the committee today on its strategic plan and annual performance plan. The Committee noted with concern that critical performance indicators for both funds have been removed from the annual performance plan and shifted to the Director-General’s office under “special projects”, effectively removing parliamentary oversight and public transparency.
“South Africans deserve functioning institutions that protect workers and support economic resilience. You cannot speak of inclusive growth – as the Government of National Unity rightly aims to do – while allowing core social protection funds to remain in chronic dysfunction,” said Ms Boshoff.
Despite repeated warnings by the Auditor-General and ongoing public dissatisfaction, the department has presented no credible turnaround strategy for either fund. “What we heard today was unfortunately more of the same – vague references to internal processes and no meaningful reform trajectory. These entities remain trapped in cycles of mismanagement, with little accountability and no visible commitment to restructuring,” said Ms Boshoff.
The committee calls on the department to urgently reconsider its position on the structural reform or unbundling of the UIF and CF and to present a concrete turnaround plan with timelines, measurable targets and consequence management. “The status quo is not working. If these funds cannot turn themselves around, then government must restructure them entirely,” Ms Boshoff concluded.
The committee will continue to hold the department accountable to the commitments set out in the National Development Plan, the SONA 2025 priorities, and the Government of National Unity’s Statement of Intent for a capable, transparent and inclusive state.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE SELECT COMMITTEE ON ECONOMIC DEVELOPMENT AND TRADE, MS SONJA BOSHOFF.
For media inquiries or interviews with the Chairperson, please contact the committee’s Media Officer:
Name: Sibongile Maputi (Mr)
Cell: 081 052 6060
E-mail: smaputi@parliament.gov.za
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