COIDA: Scam Alert Regarding Letters of Good Standing [c2ce7c]

Posted 19 November 2025 Written by Acts Online
Category Labour

Brought to you by SA Accounting Academy: The Compensation Fund has alerted employers and professional practitioners to a surge in fraudulent activities related to the procurement 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 is a mandatory document for businesses to prove compliance and participate in various commercial activities, including tender processes. The Fund has identified unauthorized individuals posing as officials or intermediaries who claim to facilitate the immediate issuance of these letters in exchange for direct payments into private accounts.

The Compensation Fund emphasizes the following regulatory requirements and security measures:

  • Letters of Good Standing must only be generated through the official Department of Employment and Labour online systems, specifically the CompEasy and Return of Earnings (ROE) portals.
  • Payments for assessments must be made directly to the Compensation Fund’s verified bank account using the correct 99-series reference number provided on the assessment notice.
  • The Fund does not utilize private bank accounts for any statutory collections or administrative fees.
  • Any letter that does not contain a verifiable QR code or system-generated security features should be treated as fraudulent and reported to the authorities.

Employers are reminded that to obtain a legitimate Letter of Good Standing, they must be registered with the Compensation Fund, have submitted all required annual Returns of Earnings, and be up to date with all assessment payments or have a formal, approved installment plan in place.

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

  • For yourself: Professional practitioners must verify the source of any COIDA compliance documents received from third-party consultants before incorporating them into audit files or regulatory submissions.
  • For your business: Ensure that internal payroll or compliance departments only use the official CompEasy portal for ROE submissions and never authorize payments to bank accounts not explicitly belonging to the Compensation Fund.
  • For your clients: Advise clients to ignore unsolicited communications offering to “clear” COIDA debt or “fast-track” certificates, as using forged documents can lead to disqualification from tenders and potential criminal prosecution under Section 81 of the Act.

Originally published at https://accountingacademy.co.za/news/read/coida-scam-alert-re-letters-of-good-standing-14

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