OPEN LETTER

9 November 2021

Commissioner Vuyo Mafata

Compensation Fund Commissioner

Also for the attention of:

Minister Thulas Nxesi

Minister of Employment and Labour

Dear Commissioner

ISSUING OF ‘NEW’ RULES TO THE COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT (COIDA) – CALL FOR IMMEDIATE AND PERMANENT WITHDRAWAL

The abovementioned matter refers.

NEASA is extremely disappointed in the actions of the Commissioner of the Compensation Fund (‘the Commissioner’) after the publication of the new rules (‘the rules’) to the Compensation for Occupational Injuries and Diseases Act 130 of 1993 (COIDA), on 19 October 2021. These rules are, in effect, precisely the same as the rules withdrawn on 15 October 2021.

Once again, we emphasize that the implementation of these detrimental rules, in contradiction to both the will of Parliament and legislation, cannot and will not be left unchallenged. On the contrary, NEASA, in conjunction with other role players and stakeholders in this industry, are joining forces to launch a campaign, on all possible platforms, in order to guarantee maximum public exposure, influence and support in order to ensure the permanent withdrawal of these rules. We therefore advise you to either immediately withdraw the rules, or face the public backlash.

NEASA would like clarity on what exactly the rationale behind the Commission’s thinking was when they opted to draft rules identical to those which it previously withdrew due to violent opposition?

We were initially relieved when the Parliamentary Portfolio Committee on Employment and Labour, following the numerous objections by interested parties, removed the controversial clause 43(4) of the COID Amendment Bill, which sought to prohibit Medical Service Providers (MSPs) from ceding their claims for payment by the Compensation Fund to financial institutions or third-party administrators.

By removing the prohibition, Parliament admitted and acknowledged that third-party administrators fulfil a critically essential role in the Fund which is plagued by dysfunction and corruption.

Since the Compensation Fund will no longer be accepting banking details and nominated bank accounts of agents and other representatives, other than MSPs or Healthcare Organisations, these rules effectively, again, amount to the prohibition of cessions.

Clearly, the rules are in direct contradiction to the COID Amendment Bill, as accepted by the Parliamentary Committee on the matter. Bureaucrats at the Fund, after being overruled by Parliament, simply implemented their original wish of prohibiting cessions, by virtue of these rules.

Should the ‘new’ rules take force as envisaged, it will effectively leave the already strained MSPs out of pocket and without the third-party administrators’ cession-safety net.

NEASA wishes to express its utmost disdain with the Compensation Fund, who underhandedly intends to implement these controversial and contradictory rules to the detriment of the industry.

The manner in which the exact same rules were drafted and published by bureaucrats, is unethical and is a classic example of bad-faith, malicious back-door introduction of irrational legislation.

We therefore call on Commissioner Mafata to immediately and permanently withdraw these rules.

We look forward to your urgent response and hope that this matter can be resolved swiftly and with finality.

G.C. Papenfus

CHIEF EXECUTIVE

For more information:

NEASA Media Department

media@neasa.co.za

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