COIDA: Scam Alert Regarding Letters of Good Standing [f41d5d]

Posted 19 November 2025 Written by Acts Online
Category Labour

Brought to you by SA Accounting Academy: In terms of the Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993 (COIDA), the Compensation Fund has identified a surge in fraudulent activities where third parties impersonate Department of Employment and Labour officials to issue counterfeit compliance documents.

The alert focuses on the illicit solicitation of payments for the expedited processing of a Letter of Good Standing (LOGS). Fraudulent entities are reportedly contacting employers and practitioners, claiming to facilitate the immediate issuance of certificates in exchange for unauthorized fees, or providing forged documents that are not reflected on the Fund’s official database.

The Compensation Fund emphasizes that the only legitimate method for obtaining a Letter of Good Standing is through the official online platforms. To ensure compliance and avoid financial loss, the following protocols must be observed:

  • All applications for a Letter of Good Standing must be processed exclusively through the official CompEasy system or the Department of Employment and Labour’s online portal.
  • Employers must verify that banking details for assessment payments match the official accounts of the Compensation Fund before transferring funds.
  • Any Letter of Good Standing received should be verified for authenticity via the Fund’s online verification tool using the unique system-generated reference number.
  • Practitioners should avoid utilizing “middlemen” or consultants who claim to have internal influence to bypass standard assessment procedures or clear outstanding debts.

A forged Letter of Good Standing is legally invalid. Use of such documents can result in the disqualification of a business from tender processes and may lead to personal liability for the employer under Section 87 of the Act in the event of workplace injuries, as the Fund will not provide cover for employers who are not in good standing.

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

  • For yourself: Verify the authenticity of any Letter of Good Standing received from third parties by checking the document’s unique reference number on the official Compensation Fund portal before submitting it for compliance purposes.
  • For your business: Ensure that all COIDA-related payments and applications are processed exclusively through the official CompEasy system to avoid financial loss and the risk of non-compliance due to invalid documentation.
  • For your clients: Advise clients to ignore unsolicited emails or invoices from “consultants” claiming to facilitate immediate COIDA clearance, as these often lead to the issuance of fraudulent certificates that are not recognised by the Fund.

Originally published at https://accountingacademy.co.za/news/read/coida-scam-alert-re-letters-of-good-standing-12

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