In a bid to ensure the Unemployment Insurance Fund’s Covid-19 Temporary Employee Relief Scheme does not fall prey to criminal elements as has happened, new and more stringent controls to verify banking details have been introduced.

As a result of these changes, the fund has had to delay payments, but these resumed over the weekend with disbursements of R 372-million of Covid-19 TERS benefit claims.

The payment covered claims for April and May lodged by 15 866 employers benefitting 78 283 employees for whose banking details passed the verification process. Further payments were done today (14 July 2020) with some R295-million paid out from 1 824 employers benefitting 76 078 workers.

This brings the total paid to date since April 16 to just under R30-billion, covering 6 789 695 workers from 539 953 employers.

As part of the new control measures, the fund has also introduced a new rule to the system that requires applicants to insert either the Enterprise number (CK/CIPC) or the ID number of the bank account holder in the TERS Online portal, in order to further verify banking details against the authorised claimant.

“This requirement which may seem onerous is critical to ensure banking details are verified before any TERS payment is authorised. But failure to populate the system properly will unfortunately lead to more delays in the payment process,” warns UIF commissioner Teboho Maruping.

The commissioner adds that the Fund has been at the receiving end of fraud complaints after it emerged that certain individuals managed to change banking details of their companies and inserted their own.

“This situation has created a need for us to do an upfront account verification and validation before the payment is made, and we expect this to increase our turnaround time by two days as the accounts are verified and validated to ensure that fraud at company level is eliminated and reduced as far as possible.

“We cannot overemphasize how important it is for companies to provide correct information that can be validated and verified with the banks so that there are no delays with the payment,” Maruping adds.

The new changes come as the fund has paid over R1-billion directly into the bank accounts of 238 086 employees since April 2020. Direct payments to employees have not been affected by the new measures.