COIDA: Scam Alert Regarding Letters of Good Standing [806cea]

Posted 19 November 2025 Written by Acts Online
Category Labour

Brought to you by SA Accounting Academy: The Compensation Fund (CF) has alerted the public and employers to a rise in fraudulent activities where scammers pose as officials or authorized agents to facilitate the issuance of Letters of Good Standing.

In terms of the Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993 (COIDA), a Letter of Good Standing (LoGS) is a critical document that confirms an employer is registered with the Compensation Fund and has complied with the requirements of the Act, including the submission of Returns of Earnings and payment of assessments.

The Compensation Fund has identified several red flags regarding these fraudulent operations:

  • Unauthorised individuals or ‘consultants’ charging exorbitant fees to ‘fast-track’ the issuance of a Letter of Good Standing.
  • The distribution of forged or tampered documents that appear to be official Letters of Good Standing but are not reflected in the Fund’s internal database.
  • Requests for payment into private bank accounts rather than the official Compensation Fund bank accounts or through the designated online payment portals.

Employers are reminded that the only legitimate way to obtain a Letter of Good Standing is through the official Department of Employment and Labour online platforms, specifically the CompEasy or ROE Online systems. Any document obtained through unofficial channels may be deemed invalid, potentially disqualifying businesses from tenders, contracts, or claims processing under Act No. 130 of 1993.

Official Compliance Procedures

To ensure compliance and avoid falling victim to scams, the Compensation Fund directs employers to adhere to the following procedural requirements:

  • Ensure all Returns of Earnings (ROEs) are submitted accurately and on time via the official portal.
  • Verify that all outstanding assessments, including interest and penalties where applicable, are paid in full.
  • Download the Letter of Good Standing directly from the system once the account is cleared.
  • Verify the authenticity of a Letter of Good Standing using the unique certificate number on the official Department of Employment and Labour website.

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

  • For yourself: No direct individual obligations; impact is channelled through professional due diligence and the requirement to provide accurate regulatory advice regarding COIDA compliance.
  • For your business: Ensure that your firm’s own Letter of Good Standing is obtained exclusively through the CompEasy or ROE Online portals to avoid the risk of using fraudulent documentation in tender applications.
  • For your clients: Advise clients to terminate engagements with unauthorized third-party ‘fixers’ and to verify any existing Letters of Good Standing against the Compensation Fund’s digital registry to mitigate the risk of non-compliance penalties.

Originally published at https://accountingacademy.co.za/news/read/coida-scam-alert-re-letters-of-good-standing-18

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