Media Release

Department of Labour – 20 February 2012

The Department of Labour’s Compensation Fund (CF) is to engage stakeholders in a national roadshow in Klerksdorp on Tuesday 21 February 2012, to promote the concept of decentralisation which is intended to propel the operational efficiency of the organisation.


The first event will start at 9am for internal stakeholders at the Departmental offices. It will be followed by another for external stakeholders at the Tusk Rio at 12 noon.


Decentralisation is an initiative whereby services of Compensation Occupation Injuries and Diseases Act (COIDA) are rendered at provincial level, rather than be solely provided at the CF’s head office. The initiative to introduce decentralisation in the provinces is intended to bring Compensation Occupation Injuries and Diseases Act (COIDA) services closer to the people.


In 2009 Decentralisation was piloted in the Limpopo, Free State; Kwa-Zulu Natal and Eastern Cape with the view of improving the turn-around time in processing claims.  In December 2010, the Fund decided the pilot was to be rolled out to the remaining provinces; Gauteng; North West; Northern; Western Cape and Mpumalanga.


The Compensation Commissioner, Shadrack Mkhonto accompanied by board’s Chairman Mongezi Mngqibisa, will lead a delegation on this national tour. Also expected to attend is Andile Makapela, the north west chief director provincial  operations.


Compensation Fund Deputy Director: Communication Dikentsho Seabo said the latest initiative follows a national pilot to test the efficacy of decentralising the services of the Compensation Fund, which had proven successful. The decentralisation is expected to be implemented in the new financial year which starts in April 2012, Seabo said.


“Prior to the decentralisation’s pilot all information and documentation had to be sent to the national office for registration, adjudication and payment. We felt from the feedback of the stakeholders and clients that this arrangement was frustrating. Prior to the decentralization the turnover time for registering and adjudication was about 90 days and this has now been reduced to 60 days, and we feel that there is still room for further improvement.


“The pilot programme cannot continue indefinitely. Soon we will want to implement the decentralization on a ’full blast’. A key component to the decentralisation has been the approval of an organizational structure and accommodation of COID staff in the provinces. Employees need not be concerned, because the restructuring will result in a need for more resources, especially in the form of human resources,” Seabo said.


According to Seabo another element in the decentralisation process has been the move away from manual processing to the introduction of electronic system since October 2011. Seabo said the key message at the roadshow would be explaining what the decentralization process was all about? Why was it being implemented? What impact will it have on the service providers, and service delivery!


She added that a number of change management sessions have been held with staff on the implication of decentralization.


“We will not only expect questions in our engagements, but also input as we engage all our stakeholders on how to improve service,” she said.  


The purpose of these road shows is to address provincial management and COID staff about the CF decentralisation process and other developments that are taking place at the Fund. The meetings will also be extended to the Stakeholders representatives of the Compensation Fund such as Organised Labour, Medical providers, Business organisations, shop stewards, etc.


The suggested programme for the day is that Commissioner and Board meet with management in the morning and with stakeholders in the afternoon.


Other roadshows will take place in the  Free State on February 24; Gauteng  February 29 and  March 13 in KwaZulu-Natal.


The Compensation Fund is a public entity of the Department of Labour whose function is to compensate workers against injuries, disability, illness, diseases and death sustained during work.


In the period ending 30 March 2011 the Fund posted a whopping R13,5-billion surplus. The Fund raises its revenue from annual once-off levies from employers. In the same period the underlying asset base rose from more than R28,1-billion to R29,4-billion.

The Fund’s total investments as at the end of the period under review sit at R27,6-billion.


Issued by: Department of Labour – 20 February 2012


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