Compensation Fund accused of bullying and failing injured workers
· Citizen
The Compensation Fund has been marred by claims of bullying, intimidation and poor governance amid reports that injured workers wait years for payments while the entity sits on more than R150 billion in reserve funds.
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The fund, under the department of employment and labour, provides insurance to employees for injuries, diseases or death sustained at work.
It also protects employees by paying for medical costs and lost income, while shielding employers from direct financial liability for workplace accidents.
Concerns grow over governance and leadership
According to several sources, the fund has amassed 14 consecutive audit disclaimer opinions, raising long-standing concern about financial controls, leadership failures and service delivery.
At the heart of the latest allegations is acting compensation commissioner Farzana Fakir, who has held the acting position for nearly three years.
This is despite mounting internal complaints from staff and concerns over the entity’s performance.
Fakir was initially appointed almost a decade ago to head the orthotics, rehabilitation and integration directorate in the fund.
Questions raised over rehabilitation programmes
However, officials claim the unit has failed to meaningfully return injured workers to work.
“Instead, the directorate has effectively become a bursary and assistive device office, while rehabilitation initiatives such as farm training programmes have produced little measurable benefit beyond stipends paid to beneficiaries attending the programmes,” a source said.
The allegations come as the fund continues to struggle with service delivery.
According to internal performance figures cited by concerned officials, the entity achieved only 52% of its annual performance targets in 2022-23, 50% in 2023- 24 and 52% again in 2024-25.
It is further alleged that performance indicators for the 2025- 26 financial year were watered down and, in some cases, disconnected from actual service delivery outcomes.
Injured workers allegedly face years-long delays
One example cited was the approval of assistive devices such as wheelchairs and prosthetic limbs being counted as a completed target without measuring whether the devices were ultimately procured and delivered to beneficiaries.
The allegations paint a grim picture for injured workers reliant on compensation payments.
Some workers who applied for compensation benefits five years ago are allegedly still waiting for their claims to be finalised.
At the same time, internal tensions appear to be escalating. More than 15 employees have reportedly sought psychological intervention through the human resources department due to stress allegedly linked to bullying and intimidation.
Several managers have reportedly lodged grievances, while former officials, including medical doctors, have allegedly pursued constructive dismissal complaints after leaving the fund.
Fund says complaints are under internal review
An independent grievance investigation commissioned into workplace complaints reportedly found shortcomings in Fakir’s leadership style.
However, sources claim “no disciplinary action followed after the findings were shared with senior officials in the department”.
Fund spokesperson Dikentsho Seabo said it took “note of the allegations raised and confirms that all matters raised are subject to an internal process done in line with applicable governance and regulatory prescripts”.
“In the interest of preserving the integrity of the process, no comment will be provided at this stage.”