Committee Report on DEL Quarter 3 Performance 2024/25 & BRRR

Video   Budgetary Review and Recommendations Reports (BRRR) Tabled Committee Reports The Chairperson informed the Committee that information on investments on behalf of Unemployment Insurance Fund (UIF) and Compensation Fund had been received but was not part of the agenda. Members had been sent the reports on the investments, but he acknowledged that the information was difficult to interpret. More refined data was needed to help the Committee make informed recommendations on these investments. The Committee reviewed its report on the Department of Employment and Labour Quarter 3 Performance 2024/25. A Committee member proposed that, as DEL was unlikely to receive more funds this year, the report recommend reallocating resources from less effective entities like Supported Employment Enterprises and Productivity SA to more essential ones, such as the CCMA. Nedlac might also need additional funds due to labour law changes. Other members agreed about the importance of funding the CCMA but disagreed with cutting support for SEE, as it empowers people with disabilities. Another member defended continued support for Productivity SA. The Chairperson supported this suggestion, noting that this was reflected in the Budgetary Review and Recommendations Report (BRRR) which covered the entire year. In response to a request for an update on U-Filing, he said that this could be obtained in writing. After the Committee adopted its report on Quarter 3, it reviewed its BRRR for 2024. Committee members emphasised aligning substantive observations with recommendations. The DEL commitments about the Auditor-General findings should be reflected in the recommendations, particularly the need to fill critical vacancies and address financial losses from the Temporary Employer/Employee Relief Scheme (TERS). Suggestions were made about strengthening accountability by means of accurate financial records, better procurement practices, and stronger internal controls; using electronic invoicing and improving IT project alignment with DEL goals. A concern was noted about the Department’s handling of fraud investigations and external involvement was needed to ensure accountability. Concerns were raised about the Department's limited focus on employment creation as well as its inspection and enforcement services; delayed payments to businesses causing losses; law enforcement in the recommendations and clarified the report's approval process. Other recommendations included improving performance management at the Compensation Fund; the review of the CCMA budget; reforms for Productivity SA and strengthening Nedlac procurement processes. The meeting ended with plans to amend the BRRR and adopt it later that day.