SIU storms homes and offices in KZN and GP in massive R161m Covid funds scam bust
The Special Investigating Unit (SIU), in collaboration with specialised police units, is executing search warrants today across KwaZulu-Natal and Gauteng as part of an investigation into a R161 million fraud syndicate linked to the Unemployment Insurance Fund’s (UIF) COVID-19 Temporary Employee Relief Scheme (TERS), the Sunday Tribune has reported.
The operation, authorised by a warrant issued by the Special Tribunal, targets multiple locations, including business premises, private residences, and the UIF head office in Pretoria.
According to SIU spokesperson Kaizer Kganyago, the searches form part of an extensive investigation into fraudulent TERS applications submitted on behalf of individuals who were not employed by the companies in question. The scale of the operation highlights the gravity of the allegations, which implicate more than 35 individuals and 16 companies.
Among those identified is Thamsanqa Madlala, director of Bokoharama Construction, who is considered a key figure in the investigation.
The SIU alleges that a sophisticated syndicate orchestrated the submission of falsified claims, diverting funds intended for financially distressed workers to syndicate members. The conduct is said to demonstrate patterns consistent with money laundering.
Kganyago stated that the SIU is also conducting a search at the UIF head office, as several officials have been identified as persons of interest. Investigators are probing whether these officials facilitated fraudulent claims, bypassed auditing protocols, or manipulated UIF systems to clear so-called “victim” profiles.
“President Cyril Ramaphosa authorised the SIU to investigate allegations concerning the UIF in terms of Proclamation R.8 of 2021. The SIU has since examined TERS payments made to ineligible individuals and investigated the submission of false, irregular, invalid or defective applications, including the causes of such maladministration,” Kganyago said.
Evidence seized during today’s operation will undergo forensic analysis, and the SIU will pursue civil litigation to recover financial losses incurred by the state.
SIU teams, supported by the SAPS National Intervention Unit and Tactical Response Team, are seeking crucial evidence, including bank statements, fraudulent TERS applications, memoranda of understanding (MOUs) with UIF, related correspondence, and digital devices used by the suspects.
The operation is focused on three key entities operating in Gauteng and KwaZulu-Natal. These include Nakomang Trading Enterprise, which allegedly received over R19 million; and Lubelo Hlomuka Holdings, trading as SA Scrum Assembly, which is reported to have received R15.9 million.
Lubelo Hlomuka Holdings’ director, Nhlakanipho Mngomezulu, has been identified as the alleged mastermind behind the syndicate.
Raids are taking place at locations linked to these individuals and entities in Pietermaritzburg, Kenville in Durban, Sandton, and Fourways.
Bokoharama Construction, led by Madlala, is alleged to have received more than R18 million. Related searches are under way in Port Shepstone, Anerley, and Margate on the KwaZulu-Natal South Coast.
Another company under scrutiny is Aventador Gate in Pretoria, which is linked to approximately R3.8 million in allegedly fraudulent benefits. Several other KwaZulu-Natal-based companies are also under investigation.
Among the individuals suspected of managing financial flows within the syndicate is Yolanda Nombuso Mgobo, who is believed to have received and distributed over R18.6 million. Searches are being conducted at her residences in Scottburgh and Amanzimtoti, as well as at properties associated with her fiancé.
Additional persons of interest include Sphamandla Sokhela and attorney Nhlakanipho Zondi, alleged proxies for Mngomezulu. Their premises in Pietermaritzburg and Edendale are also being searched.
Senzo Gumede, director of Amakhosana Contractors and Senzisipho Pty Ltd, is suspected of laundering funds, while Sboniso Ronald Cele and Simtholile Dlamini are alleged to have acted as “runners” for the syndicate.
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