COIDA: Scam Alert Regarding Letters of Good Standing

Posted 19 November 2025 Written by Acts Online
Category Labour

Brought to you by SA Accounting Academy: The Compensation Fund has warned employers and practitioners of a scam involving the issuance of fraudulent Letters of Good Standing (LOGS) by unauthorized individuals posing as Fund officials or intermediaries.

In terms of the Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993 (COIDA), a Letter of Good Standing is a mandatory document for employers to prove their compliance with the Act, particularly when bidding for government or private sector tenders. The Fund has noted an increase in forged documents being sold to unsuspecting businesses, which can lead to severe legal and financial consequences for the entities involved.

To ensure compliance and avoid falling victim to these scams, the Compensation Fund has issued the following directives:

  • All applications for a Letter of Good Standing must be processed exclusively through the official CompEasy or e-COID online platforms.
  • Employers should not make payments into personal bank accounts or to third-party agents claiming to facilitate the immediate release of a letter.
  • Verification of any Letter of Good Standing can be performed on the Department of Employment and Labour’s official website to confirm its authenticity.
  • Assessments must be paid directly to the Compensation Fund using the correct reference numbers provided on the Notice of Assessment (W.As.6).

The Fund emphasizes that any employer found in possession of a fraudulent Letter of Good Standing may face criminal charges and will be disqualified from procurement processes. Furthermore, such documents do not provide the necessary indemnity against claims arising from workplace injuries or diseases as provided for under Section 35 of the Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993.

What this means for you, your business, or your clients

  • For yourself: You must exercise due diligence when assisting with COIDA compliance by ensuring that all documentation is sourced directly from the Department of Employment and Labour’s digital portals rather than third-party vendors.
  • For your business: Your firm faces significant reputational and legal risk, including potential blacklisting from state tenders, if a fraudulent Letter of Good Standing is submitted as part of a compliance file.
  • For your clients: Advise clients to verify their current registration status and ensure that all Section 82 annual returns (Return of Earnings) are filed correctly through official channels to generate a legitimate Letter of Good Standing.

Originally published at https://accountingacademy.co.za/news/read/coida-scam-alert-re-letters-of-good-standing-10

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