COIDA: Scam Alert Regarding Letters of Good Standing [25c438]

Posted 19 November 2025 Written by Acts Online
Category Labour

Brought to you by SA Accounting Academy: The Compensation Fund has alerted employers to a rise in fraudulent schemes involving the solicitation and issuance of counterfeit Letters of Good Standing (LOGS).

In terms of the Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993 (COIDA), a Letter of Good Standing is a critical document that confirms an employer is registered with the Compensation Fund and has complied with the administrative and financial requirements of the Act. This includes the submission of annual Returns of Earnings (ROE) and the full payment of all assessments due to the Fund.

The scam typically involves third parties posing as Compensation Fund officials or authorized intermediaries. These individuals often contact employers claiming that their compliance status is at risk or offering to “fast-track” the issuance of a LOGS for an additional, unofficial fee. In other instances, fraudulent agents provide counterfeit certificates that appear legitimate but lack valid verification data on the Department of Employment and Labour’s systems.

The Compensation Fund emphasizes that official Letters of Good Standing can only be generated through the authorized online platforms, specifically the CompEasy system or the official Department of Employment and Labour portal. Employers are cautioned against making payments into any bank accounts other than the official Compensation Fund accounts verified on the annual assessment notices.

Key Compliance Indicators

  • Verification: Every legitimate LOGS contains a unique certificate number and a QR code that can be verified on the official Compensation Fund website.
  • Official Channels: All ROE submissions and LOGS applications must be processed through the COIDA online portal.
  • Direct Payment: Assessments must be paid directly to the Fund using the correct 99-series reference number provided on the Notice of Assessment.

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

  • For yourself: When reviewing compliance documentation for professional engagements, always verify the authenticity of a COIDA Letter of Good Standing by scanning the QR code or entering the certificate number on the Department of Employment and Labour’s verification portal.
  • For your business: Ensure that your internal procurement and compliance teams are trained to recognize the official COIDA portal and to reject any requests for “expedited” fees from third-party agents claiming to represent the Compensation Fund.
  • For your clients: Advise clients to maintain direct control over their CompEasy login credentials and to ensure that all payments for COIDA assessments are made only to the verified bank account of the Compensation Fund to avoid financial loss and non-compliance.

Originally published at https://accountingacademy.co.za/news/read/coida-scam-alert-re-letters-of-good-standing-16

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