The DA will ask the National Assembly's labour committee chair Lumka Yengeni to call Compensation Fund management to appear before the committee.

Compensation Fund head Shadrack Mkhonto needed to account for the fund's poor audit performance, Democratic Alliance spokesman Ian Ollis said.

This followed the Compensation Fund's 2009/10 annual report receiving a qualified audit with emphasis outcomes for the fifth time in as many years. Among the problems cited were poor management controls that resulted in misstated comparative figures to the amount of R342 million, and fruitless, wasteful and irregular expenditure to the tune of over R14 million.

The Auditor General's (AG) report into the Compensation Fund painted a picture of a poorly managed administration and a management team not adhering to good internal control measures and sound corporate governance as mandated in the Public Finance Management Act ), Ollis said.

In the audit, the AG cited non-adherence to Section 51(1)(a)(i) of the act, which detailed the general responsibilities of accounting officers.

"The DA notes that the fund was fingered by the AG in the previous year's annual report for the very same problem, and it points to the management of the fund being unable to address its poor internal control issues."

The fund's poor management seemed to be chronic.

The AG found irregular, fruitless and wasteful expenditure in the fund that resulted from the extension of a contract with an IT service provider without a signed agreement, to the value of R7.6 million.

This was in clear violation of the PFMA. The fund was also identified as having incurred interest on late payments of medical claims.

"The DA is particularly concerned about the late payment of medical claims as the fund is not fulfilling its core function efficiently as set out in the Compensation of Occupational Injuries and Diseases Act, which negatively affects service delivery," he said.

The Compensation Fund, as an entity under the labour department, had a history of being managed in a poor manner.

Earlier this year the DA had questioned how there was an inexplicable R1 billion shortfall in compensation paid out to injured workers in the last financial year during a presentation to the labour committee in May.

"Clearly little is being done to rectify the problems, and to this effect, I will be posing tough questions and proposing solutions to the Compensation Commissioner and his management team when they appear before the committee to account for the results of the annual report," Ollis said.