COIDA: Scam Alert Regarding Letters of Good Standing [c500ad]

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 issued an urgent alert regarding the proliferation of fraudulent Letters of Good Standing (LOGS).

A Letter of Good Standing is a certificate issued by the Compensation Commissioner or a licensed mutual association confirming that an employer is registered with the Fund and has complied with the requirements of the Act, including the submission of annual Returns of Earnings and the payment of assessments. The Fund has identified various third-party ‘consultants’ and websites claiming to issue these letters for a fee, often bypassing the official assessment process.

Employers are reminded that legitimate Letters of Good Standing can only be obtained through the following official regulatory channels:

  • The Department of Employment and Labour’s online CompEasy system;
  • The Return of Earnings (ROE) online portal; or
  • Directly from licensed mutual associations such as Rand Mutual Assurance (RMA) or Federated Employers Mutual (FEM) for employers in the mining and construction sectors.

Possession of a fraudulent Letter of Good Standing constitutes a criminal offence and renders the employer non-compliant. Under Section 73 and Section 87 of the Act, such non-compliance may lead to the rejection of claims for workplace injuries or diseases, leaving the employer personally liable for compensation and medical expenses. Furthermore, the use of forged documents in tender processes may lead to prosecution for fraud.

Verification and Compliance

Employers and contractors are urged to verify the authenticity of any Letter of Good Standing presented to them by using the verification tools available on the official Compensation Fund website. Verification requires the employer’s registration number and the unique certificate number found on the document to ensure the record matches the Fund’s internal database.

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

  • For yourself: Ensure you are familiar with the official CompEasy login procedures and never share your entity’s login credentials with unverified third-party service providers who claim they can ‘fast-track’ certificates.
  • For your business: Conduct an immediate audit of your current Letter of Good Standing to ensure it was generated via the official ROE online portal and verify its status using the Compensation Fund’s online verification tool.
  • For your clients: Advise clients that presenting a fraudulent certificate during tender processes or contract renewals may result in immediate disqualification, contract termination, and potential blacklisting by the Department of Employment and Labour.

Originally published at https://accountingacademy.co.za/news/read/coida-scam-alert-re-letters-of-good-standing-11

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