SIU's sweeping investigation targets R161 million UIF fraud linked to Covid-19 TERS claims
The Special Investigating Unit (SIU) has launched a search and seizure operation across KwaZulu-Natal and Gauteng, targeting a syndicate allegedly responsible for defrauding the Unemployment Insurance Fund (UIF) of more than R161 million through fraudulent Covid-19 Temporary Employer/Employee Relief Scheme (TERS) claims.
The operation, which is backed by various specialised units of the South African Police Service (SAPS), including the National Intervention Unit (NIU), the Directorate for Priority Crime Investigation (DPCI), also known as the Hawks, and the Tactical Response Team (TRT), is being executed at multiple locations across the two provinces.
According to SIU spokesperson Kaizer Kganyago, the investigation has uncovered evidence suggesting that a well-organised syndicate orchestrated the submission of false TERS applications on behalf of individuals who were not employees of the applicant companies.
“The substantial funds that were received were not paid to workers, but rather, were distributed among syndicate members in patterns consistent with money laundering,” Kganyago said.
The SIU’s search and seizure operation targets several premises, including offices, residences, and the UIF Head Office in Pretoria.
The operation is linked to 16 companies and over 35 individuals suspected of being central to the fraudulent scheme.
Key figures include Thamsanqa Madlala, director of Bokoharama Construction, which received R18,197,289.94 in TERS funds. Searches are being conducted at locations in Port Shepstone related to the company.
Other companies under investigation include Nakomang Trading Enterprise, which received R19,183,197.34, and Lubelo Hlomuka Holdings, trading as SA Scrum Assembly, which received R15,917,398.98. Searches are ongoing in Johannesburg, Pietermaritzburg, Sandton, and Durban.
Several individuals are also under scrutiny, including Yolanda Nombuso Mgobo, who allegedly distributed over R18.6 million in syndicate funds, and Nhlakanipho Mngomezulu, believed to be the mastermind of the operation.
Searches are being conducted at properties associated with these individuals in Scottburgh, Amanzimtoti, and Fourways. Other figures of interest include Sphamandla Sokhela, Nhlakanipho Zondi, Senzo Gumede, and Sboniso Ronald Cele.
In addition to investigating the companies and individuals involved, Kganyago said the SIU is also focusing on officials at the UIF Head Office in Pretoria.
“The investigation has identified several officials whose possible involvement is being probed to determine whether they facilitated fraudulent applications, bypassed audits, or cleared ‘victim’ profiles from the UIF system,” he said.
Searches at the UIF Head Office are being carried out in an effort to retrieve crucial documents and digital evidence that could aid the investigation.
“SIU teams, assisted by the SAPS NIU and TRT, are searching for crucial evidence, including: Documents – original and copies of bank statements, fraudulent TERS applications, Memoranda of Understanding (MOUs) with UIF, and all related correspondence.
”Digital evidence – computers (desktops, laptops), data storage devices, cellular phones, and network equipment belonging to or used by the targeted companies and individuals,” he said.
Kganyago explained that the operation, which was authorised by a warrant issued by the Special Tribunal, aims to gather evidence that will assist in both the criminal investigation and subsequent civil action to recover financial losses.
“The SIU investigated TERS payments to individuals who were not entitled to receive them and submitted false, irregular, invalid, or defective applications to the UIF, including the causes of such maladministration,” Kganyago
Kganyago said the seized evidence will undergo forensic analysis to support the ongoing investigation.
”The SIU will pursue civil action to correct any wrongdoing identified, and we will refer evidence pointing to criminal conduct to the National Prosecuting Authority for further action,” Kganyago said.
This coordinated operation forms part of the broader effort authorised by President Cyril Ramaphosa under Proclamation R8 of 2021, which mandates the SIU to investigate allegations of maladministration and fraud within the UIF.
hope.ntanzi@iol.co.za
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