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ACCF pays $4.5M to Veritas as ministry overhauls claims process

December 5, 2024 4:27 pm

The Accident Compensation Commission has paid a total of $4.5 million to Veritas Limited for administrative work from 2019 to 2023.

Veritas Limited was engaged as a claims agent for the ACCF starting in 2019 and charged an annual fee of $900,000.

Employment Minister Agni Deo Singh said that with this in mind, his Ministry has restructured the Workers’ Compensation Unit, which now has 16 staff members processing employment and school accident cases more effectively.

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Singh added that the Ministry is handling cases expeditiously, efficiently, and cost-effectively.

The Ministry inherited around 1,101 cases from the ACCF in June.

Singh pointed out that between 2019 and 2021, the ACCF settled only 253 employment and school accident cases, paying out $3.5 million.

However, in just four months, the Ministry has settled 242 cases and paid out $3.3 million.

According to Singh, the Ministry is now saving over $1.3 million annually by processing these claims in-house.

“A Cabinet Paper will soon be presented to the Cabinet whereby we will propose that we have a tripartite board that is going to oversee the work of the ACCF, and the Ministry will continue to work out the process and expedite all the pending cases.”

Opposition Member of Parliament Faiyaz Koya said that while the ACCF can delegate its powers to officers, employees, agents, or consultants, it cannot transfer responsibility for the ACCF to the Ministry of Employment, as the Ministry of Justice is responsible for the ACCF.

“That requires some legislative change, so the current processing by the Ministry of Employment could be considered unlawful, something that the Ministry, Attorney-General’s Chambers and Ministry of Justice would have to look at.”

Koya further added that until the Cabinet paper mentioned by Singh is approved, any applications without Cabinet approval could lead to issues that the Auditor-General may flag in the Bill.

Minister for Justice Siromi Turaga clarified that the ACCF still falls under his Ministry.

“There has been some discussion from last year, Cabinet has been informed, paper in terms of the reform has been held back, and it has gone through the Cabinet Sub-Committee on legislation. What is going on now in the next two or three months they will socialise these issues, the reforms, the way forward with the respective ministries before they come back to Government.”

Turaga also stated that an interim committee has been appointed to review compensation claims, with its term expiring in March next year.

He is hopeful that the Bill will be passed by Parliament before then.