The Special Investigating Unit (SIU) has obtained an order from the Special Tribunal freezing assets belonging to Nhlakanipho Mngomezulu after an investigation into the unlawful receipt of Temporary Employer/Employee Relief Scheme (TERS) funds.
According to the SIU, Lubelo Hlomuka Holdings, trading as SA Scrum Assembly, of which Mngomezulu is the director, unlawfully received approximately R16 362 525.29 from the Unemployment Insurance Fund (UIF), administered by the Department of Employment and Labour.
The SIU said the funds were secured through a sophisticated fraudulent scheme involving ghost employees, with money diverted from its intended purpose of supporting workers affected by the COVID-19 lockdown.
Investigators found that between 2020 and 2022, shortly after receiving the funds, Mngomezulu allegedly embarked on a spending spree, purchasing several vehicles in cash.
The vehicles affected by the preservation order included a Volkswagen VN 750 Caravelle, KIA K2700, Toyota Avanza and Ford Ranger.
The tribunal order also covers immovable properties allegedly bought using the misappropriated funds. These include two properties in Glyndale, KwaZulu-Natal, four apartments in Pietermaritzburg, and one property in Zeekoe Vallei, eThekwini.
Bank accounts linked to Mngomezulu and SA Scrum Assembly have also been frozen.
The SIU said analysis of bank records showed SA Scrum Assembly received 45 payments from the UIF, with no evidence that employee salaries were paid.
Instead, investigators found that the funds were channelled through other accounts in a pattern that appeared to be a money-laundering scheme.
The investigation further revealed that Mngomezulu personally benefited from the alleged fraud, receiving more than R5 million in multiple payments derived from the TERS funds.
In November 2025, the SIU approached the Special Tribunal seeking preservation orders over the identified properties, vehicles and bank accounts, with the intention of ultimately forfeiting the assets to the State.
Judge Margaret Victor, President of the Special Tribunal, granted an interim order preventing Mngomezulu from selling, disposing of, transferring, leasing or otherwise dealing with the assets until the matter is finalised.
President Cyril Ramaphosa authorised the SIU to investigate allegations relating to the affairs of the UIF under Proclamation R.8 of 2021, including TERS payments made to ineligible recipients and false or irregular applications.
The SIU said it remains committed to recovering public funds meant for workers during the COVID-19 pandemic and holding accountable those who unlawfully benefited.
In terms of the Special Investigating Units and Special Tribunals Act, the SIU said any evidence of criminal conduct uncovered during the investigation would be referred to the National Prosecuting Authority for further action. – SAnews.gov.za
