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Child-maintenance claimants could receive their money more quickly if government’s mooted new law to let employers transfer funds deducted from their employees directly into claimants’ accounts is passed.
At the moment, child-maintenance funds are deducted from the salaries of the affected employees and paid into the Third Party Fund, which is administered by the department of justice. The fund then has to transfer the money to beneficiaries.
Deputy Minister of Justice and Constitutional Development John Jeffery told City Press that this arrangement had created an administrative nightmare and his department was not a bank.
“We want to move to a system where the father pays money directly to the mother and she doesn’t have to come to us.
“The problem is you have all these clerks and 400 magistrates in the country, and if they are not recording the money paid to us properly, there is the potential risk of fraud.”
Third Party Fund director Nico van Harmelen said paying money directly would ensure beneficiaries received their money faster.
Jeffery said the move would also go a long way towards helping the department account for every cent paid to the fund.
The department has had problems accounting for the third-party funds, an issue that has been constantly flagged by the Auditor-General. The fund has received disclaimers for 10 consecutive years.
“We are extremely distressed by a disclaimer on audit for the Third Party Fund. That money can’t be used for anything else; it must be paid to the beneficiary and be used for the purposes for which it was intended,” said Jeffery.
Van Harmelen said: “The more we can automate the system, the more we can prevent fraud.”
It is envisaged that the new system will be in operation by the end of March next year
