SIU conducts searches in KwaZulu-Natal and Gauteng into R161 million UIF Covid-19 fraud
The SIU execute search warrants in KwaZulu-Natal and Gauteng in R161 million UIF-TERS fraud
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THE Special Investigating Unit (SIU) and specialised police units are executing search warrants today in KwaZulu-Natal and Gauteng in a R161 million Unemployment Insurance Fund's (UIF) Covid-19 Temporary Employee Relief Scheme (TERS) fraud syndicate investigation.
The operation, authorised by a warrant issued by the Special Tribunal, targets multiple premises, including offices, residences, and the UIF head office in Pretoria.
According to a statement from SIU spokesperson Kaizer Kganyago, the operation, authorised by a warrant issued by the Special Tribunal, targets multiple properties, including company offices, residential addresses, and the UIF head office in Pretoria.
The scale of the operation underscores the urgency and seriousness of allegations against over 35 individuals and 16 companies connected to the fraudulent activities.
Among those implicated is Thamsanqa Madlala, a director of Bokoharama Construction, who has emerged as a key person of interest.
The SIU investigation has revealed that a sophisticated network orchestrated the submission of false TERS applications for individuals who were not legitimate employees of the applicant companies.
Rather than benefiting workers in need, the substantial funds allocated were allegedly redistributed among the syndicate's members, illustrating patterns consistent with money laundering.
Kganyago said the SIU is also conducting searches at the UIF head office in Pretoria as the investigation 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.
"President Cyril Ramaphosa authorised the SIU to investigate allegations made in respect of the affairs of the Unemployment UIF in terms of Proclamation R.8 of 2021. 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," said Kganyago.
According to the statement, the seized evidence will undergo forensic analysis to support the investigation, and the SIU will pursue civil action to correct any wrongdoing identified and recover financial losses suffered by the State.
SIU teams, assisted by the SAPS National Intervention Unit and the Tactical Response Team, are searching for crucial evidence, including original and copies of bank statements, fraudulent TERS applications, Memoranda of Understanding (MOUs) with UIF, and all related correspondence, as well as digital evidence belonging to or used by the targeted companies and individuals.
Today's search operation is focusing on three key groups across KwaZulu-Natal and Gauteng, namely Gauteng based Nakomang Trading Enterprise who allegedly received over R19 million, and Lubelo Hlomuka Holdings trading as SA Scrum Assembly in KwaZulu-Natal and Gauteng(KZN/Gauteng). It is alleged they received R15.9 million.
Kganyago said Lubelo Hlomuka Holdings director, Nhlakanipho Mngomezulu, is identified by the SIU as the syndicate's alleged mastermind ("Mkhulu").
Searches are being conducted at associated addresses in Pietermaritzburg, Kenville in Durban, Sandton and Fourways.
Bokoharama Construction, directed by Thamsanqa Madlala, allegedly received over R18 million. Searches are being conducted in Port Shepstone, Anerley and Margate on the south coast.
Other questionable entities include Aventador Gate in Pretoria, which is linked to R3.8 million in dubious benefits, along with numerous companies operating in KwaZulu-Natal.
Key individuals suspected of managing syndicate operations include Yolanda Nombuso Mgobo, who is alleged to have received and distributed over R18.6 million in syndicate funds. Searches are underway at her residences in Scottburgh and Amanzimtoti, as well as at premises linked to her fiancé.
Also listed is Sphamandla Sokhela and attorney Nhlakanipho Zondi, the alleged proxies for Mngomezulu, whose premises are being searched in Pietermaritzburg and Edendale.
Senzo Gumede, director of companies Amakhosana Contractors and Senzisipho Pty Ltd was allegedly used to launder funds. And Sboniso Ronald Cele and Simtholile Dlamini were alleged "runners".