Dear Portfolio Committee on Employment and Labour,

The National Employers' Association of South Africa (NEASA) herewith requests clarity on the status of the proposed implementation of the Accounts Verification System (AVS), as proposed by the Notice, as gazetted during October 2021.

During a meeting by the Portfolio Committee on Employment and Labour on 2 February 2022, regarding Compensation Fund Audit Action Plan; DEL Quarter 1 2021/22 Performance, as chaired by Ms M Dunjwa (ANC), the following was stated in the meeting transcription:

Compensation Fund response
Commissioner Mafata reported that the AVS had already been implemented. The notice Ms Denner referred to dealt with the attempt to ensure payments reached the beneficiaries by minimising exceptions that had to be processed manually and to prevent fraud and payment interception. The Compensation Fund was studying the feedback it had received, which included two substantive submissions from third-party service providers whose business had been affected. He expected that this would be completed by the end of February.

Ms Milly Ruiters, Chief Director: Medical Benefits, Compensation Fund, replied that the Compensation Fund had received 75 submissions on the AVS system and it was currently working through them with the assistance of Legal Services.

Ms Silindile Mhlungu, Director: Organisational Effectiveness, Compensation Fund, replied that five disciplinary cases were still outstanding. They would be finalised by the end of March 2022.

The Chairperson recalled that Mr Nkadimeng of COIDLink had questioned the processes in General Notice 615 and the Compensation for Occupational Injuries and Diseases Amendment Bill. Since the Portfolio Committee had adopted the Bill, its responsibility was now to refer the matter to the National Council of Provinces (NCOP), which would be holding public hearings on the Bill from 22 February 2022.

It seems, from the above, that there is confusion regarding the implementation of the AVS. Has it been adopted despite the various commentary against its introduction? Are the Committee and Compensation Fund still working through the public comments?

Due to the various negative effects of the implementation of the Notice and AVS system, the status of its acceptance or rejection is of great concern to all employers in South Africa. We therefore thank you in advance for you swift response and attendance to our inquiry.

Kindest regards

Rona Bekker
Senior Policy Advisor
The National Employers' Association of South Africa (NEASA)