Labour Minister Meth blames leadership instability within dept, some of its entities for adverse audit outcome

Labour Minister Nomakhosazana Meth says the adverse audit outcome of her department is related to leadership instability both in the department and some of its entities.

The department’s finances regressed, receiving a qualified audit opinion for the 2024/25 financial year.

But Meth has told Parliament’s portfolio committee on Monday that her department continues to make strides in advancing an equitable, inclusive and resilient labour market despite the tough economic climate.

While Meth has praised the performance of the National Economic Development and Labour Council (NEDLAC) and the Commission for Conciliation, Mediation and Arbitration (CCMA) over the past year, the same can not be said of the Unemployment Insurance Fund and the Compensation Fund.

While the UIF paid out over R18 billion in benefits over the past year, Meth said that leadership instability continues to dog its effective operation.

Three acting commissioners have stepped in since Commissioner Teboho Maruping’s suspension more than a year ago.

"We are trying to finalise the disciplinary of the UIF commissioner, and we are looking at how best we can stabilise that leadership."

Meth said in the department itself, a misunderstanding of a freeze on new hires impacted governance and oversight.

"It is with regret that the Department of Employment and Labour has regressed to a qualified audit opinion, which is a cause for concern, and we also want to apportion blame on the leadership instability, which we are dealing with."

Director-General Jacky Molisane said a war room has been established to improve the department’s audit outcomes.