Pensioner receives 4.7 million TERS payout meant for former employer

CHRO South Africa 29 June 2020

The pensioner has already spent 100,000 when the erroneous payment was detected.

SowetanLive reported that a retired bus driver was paid R4.7 million in Covid-19 relief funds meant for 1,000 of his former colleagues. The 65-year-old man, who retired in December, apparently thought the money that was supposed to be paid to his former employer was a reward for contributing to the Unemployment Insurance Fund UIF during his working years.

The SowetanLive article states that the pensioner, who received the windfall in April, had already spent at least R100,000 of the money by the time the erroneous deposit was detected. .

This was the second such case where relief funds meant for workers were paid into individuals' accounts. However, unlike the first incident reported by the Sunday Times, which has been alleged to be a case of fraud, a criminal case has not been opened and the UIF has not explained how the money ended up in the pensioner's account when it was intended to be paid to a company.

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