COIDA: Scam Alert Regarding Letters of Good Standing [906eab]

Posted 19 November 2025 Written by Acts Online
Category Labour

Brought to you by SA Accounting Academy: The Compensation Fund (CF) has issued a formal warning regarding fraudulent activities and scams involving the issuance of Letters of Good Standing (LOGS).

In terms of the Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993, the Compensation Fund has identified a trend where scammers impersonate CF officials or authorised agents. These individuals typically target employers by offering to facilitate the issuance of a LOGS in exchange for payment, or by providing forged compliance certificates that do not exist on the Fund’s official database.

Employers are reminded that a Letter of Good Standing is a certificate issued by the Compensation Commissioner in terms of Section 89 of the Act. It serves as proof that an employer is registered with the Fund and is up to date with the payment of assessments. A LOGS is only valid if the employer has submitted all required Returns of Earnings (ROE) in terms of Section 82 and has settled all assessments levied under Section 83.

To ensure compliance and avoid financial loss through fraudulent schemes, the following directives must be observed:

  • All applications for a Letter of Good Standing must be processed through the official Department of Employment and Labour online platforms, specifically the CompEasy system or the ROEs Online portal.
  • Verification of the authenticity of any LOGS should be conducted via the official verification tool available on the Department’s website to ensure the document is legitimate.
  • Payments for assessments must be made directly into the Compensation Fund’s verified bank account using the correct reference numbers; payments should never be made to third-party personal or business accounts.
  • Employers should be wary of “consultants” who claim they can bypass official procedures, clear outstanding debts, or generate letters for non-compliant entities for an additional fee.

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

  • For yourself: Exercise professional due diligence by verifying the authenticity of any COIDA compliance documentation presented to you before including it in audit files or compliance reports.
  • For your business: Ensure that your firm’s internal payroll or compliance department uses only the official CompEasy portal for ROE submissions to prevent the risk of using invalid or forged Letters of Good Standing.
  • For your clients: Advise clients to ignore any third-party solicitations promising “fast-tracked” compliance letters and ensure they have a direct record of payment to the Compensation Fund’s official account.

Originally published at https://accountingacademy.co.za/news/read/coida-scam-alert-re-letters-of-good-standing-17

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