1. Presentation to the Portfolio Committee on Labour 10 th June 2009 S.S. MKHONTO Compensation Commissioner

2. LEGISLATIVE MANDATE -The Compensation Fund is a public entity of the Department of Labour -It is responsible to administer the Compensation for Occupational Injuries and Diseases Act (COIDA) No. 130/1993 as amended by the COIDA 61/1997

3.  The Fund provides compensation for disablement caused by occupational injuries or diseases sustained or contracted by workers, or for death resulting from such injuries or diseases  The Fund is financed from levies paid by employers  The revenue consists mainly of annual assessments paid by registered employers on a basis of a percentage or fixed rate of the annual earnings of their workers BACKGROUND

4. MINISTER OF LABOUR COMPENSATION BOARD DIRECTOR-GENERAL : LABOUR COMPENSATION COMMISSIONER AUDIT COMMITTEE BOARD SUB-COMMITTEES REPORTING FRAMEWORK

5. VISION To provide compensation for occupational injuries, diseases and rehabilitation of workers, and deliver continuous value to all stakeholders

6. MISSION To develop and implement solutions to provide quality and accessible services according to standards as set in consultation with our stakeholders, whilst maintaining the Fund’s liquidity

7. STRATEGIC OBJECTIVES  To provide an efficient social safety net  Ensure the financial viability of the Fund  Effective cash and investments management  Effect management reforms and restructuring of the Fund  Enhance quality and access to COIDA services and information  Ensure effective data and information management

8. ORGANISATIONAL CHALLENGES Inadequate capacity, which result in delays in processing claims Lack of electronic submission resulting in large amounts of paper in the organisation Outdated and inefficient business processes Capacity of the IT service provider and capability to respond to the organisation’s needs Non-existence of the IES case management system for COIDA unreported cases Poor enforcement of COIDA Non submission and delays in reporting of accidents and submission of information\documents, particularly banking details

9. AUDITOR-GENERAL FINDINGS 1.Revenue Generation and Collection Material incorrect assessments Material incorrect debtors 2.Claims Incurred A backlog in the scanning of documents Unavailability of supporting documents 3.Unexplained Charge arising from the Treasury Function Breakdown in internal controls with regard to bank reconciliations Completeness and accuracy of investment income Disclaimer 2007/8

10. HIGHLIGHTS (2008/9)  327 647 compensation benefits paid, total value of R630 million  815 045 medical benefits paid, total value of R1.5 billion  R4.4 billion collected from assessments - 15% increase compared to 2007/08.  Assets growth from R18.3 billion in 2007/08 to R21.4 billion 2008/09 (17%)  70% senior executive management posts filled  Business process re-engineering and benchmarking completed  Policies finalised and implemented  Electronic payments implemented  Appointment of Board members finalised and orientation conducted  Workshop held with stakeholders on Early Return to Work programme

11. LOWLIGHTS 2008/9  Policy on Early Return to Work not finalised  Claims turn-around time still remains a challenge  Slow progress in the implementation of the integrated claims and revenue management system  Lack of progress towards decentralisation of services

12. PERFORMANCE PROGRESS COMPENSATION : Payments made directly to employees YEARNO OF PAYMENTSAMOUNT PAID 2006331 672R 655m 2007335 345R 652m 2008327 647R 630m

13. NUMBER PAID COMPENSATION BENEFITS 331672 335345 327647 322000 324000 326000 328000 330000 332000 334000 336000 2007 20062008 NUMBER PAID COMPENSATION PAYMENTS COMPENSATION BENEFITS 331672 335345 327647 322000 324000 326000 328000 330000 332000 334000 336000 2007 20062008 NUMBER PAID

14. Year Number of paymentsValue 2006 / 07886 511R 1,430bn 2007 / 08777 320R 1,294bn 2008 / 09815 045R 1,544bn MEDICAL PAYMENTS Payments made directly to medical service providers

15. MEDICAL PAYMENTS contd.

16. Payment according to service provided

17. FINANCIAL INFORMATION 2007/08R’000 2008/09 R’000 Contributions revenue 3,268,5894,462,953 Investment income 1,349,8152,076,685 Other income 15,669 21,228 Benefits paid 1,298,4202,894,473 Admin 401,429 447,247 Surplus/deficit -714,415 1,287,285 Investments16,655,425 19,959,023

18. FINANCIAL INFORMATION

20. PRIORITIES 2009/10 Providing an Effective social safety net  Continuous review and updating of COIDA policies and regulations  Annual review of tariffs, benefits and premiums  Improve claims/patient turn-around time  Continuous review of business processes Effective Management of Finances and Assets of the Fund  Ensure budgetary control and monitoring  Develop computerised systems for cash and asset management  To align procurement and acquisition systems in terms of Supply Chain Management regulations  To develop and implement a new integrated financial management system  To enhance revenue collection mechanisms  To strengthen financial management capacity  Continuously review the performance of investments to ensure alignment with the fund’s investment mandate  Roll-out the Risk Management Strategy and plans

21. Reform and restructure to enhance competence and performance  To achieve a conducive working environment with appropriate roles and delegations at all levels  To rigorously implement a recruitment and retention strategy for key personnel  To develop and implement the Skills Development Plan and provide relevant and targeted training  To develop and implement a comprehensive human resources strategy and plan  To implement and maintain an effective performance management system Enhance quality and access to COIDA services and information  To ensure equity of access of COIDA services  To develop and implement a comprehensive package of services  Increase Service Channels through a CRM Strategy  To ensure integrated service delivery  Strengthening partnerships with private and public health service provider institutions  Implement of Quality Management Systems PRIORITIES 2009/10 contd.

22. Ensure qualitative and effective data information management  To develop and maintain an integrated and effective management information system  To develop an effective OHS Information System for accident prevention  To develop and implement an Actuarial Database  To develop and manage Minimum Information Security Systems(MISS) Ensure effective communication and stakeholder management  Implementation and monitor the communication policy and strategy  Development of an effective branding, marketing and promotion strategy and a uniform corporate image  Implementation and Monitoring of a media relations strategy  Implementation of a public interaction and mobilisation plan incorporating Imbizos  Implementation of a public awareness, information and education campaign PRIORITIES 2009/10 contd.