The Special Investigating Unit (SIU) has welcomed a series of major breakthroughs in the fight against COVID-19 Temporary Employer/Employee Relief Scheme (TERS) fraud.
This includes arrests in Mpumalanga, a conviction in the Free State and the preservation of assets obtained through the proceeds of crime.
“Together, these outcomes represent more than R27 million in UIF [TERS] funds that were siphoned from the state and are now preserved or recovered for the benefit of South Africans,” the unit said in a statement.
Mpumalanga ghost employees
In Mpumalanga, three people appeared in the Middelburg Magistrate’s Court on charges of fraud involving ghost employees in the UIF-TERS scheme.
The three people - Fumu Mkalira Msiska, his wife Gladness Mkhonto Msiska and his brother-in-law, Bongani Zoran Mkhonto - allegedly fabricated employees and submitted fraudulent claims to the scheme.
“These ghost employees were used to channel public funds into private hands, depriving genuine workers of relief during the COVID-19 pandemic.
“It is further alleged that the funds were subsequently transferred from A and F Consulting to Khulani Quality Contribution, a company linked to Msiska’s wife. The brother-in-law, Mkhonto, allegedly acted as a runner by sourcing identification particulars used to facilitate fraudulent claims involving ghost employees and former workers of the company.
“When the SIU and the Directorate for Priority Crime Investigation [the Hawks] interviewed some of the people from the North West and Mpumalanga whose details were used for these claims, and their details were obtained through scams that promised special grants, they were receiving free driving licenses or the details allegedly stolen from the local Sheriff’s office,” the SIU explained.
The husband-and-wife duo were granted R300 000 bail while Mkhonto was granted bail of R3 000.
“The High Court of South Africa, Mpumalanga Division, issued a preservation order against assets suspected to be the proceeds of crime, including three properties in Pretoria, Middelburg, and White River, which were preserved, along with household goods, office equipment and bank accounts, ensuring that unlawfully acquired wealth is safeguarded pending forfeiture,” the corruption busting unit said.
Additional assets frozen include:
- 2019, Land Rover, Range Rover L560,
- A 2011 Toyota Fortuner
- A 2005 Mercedes-Benz, C180 Kompressor
- A 2015 BMW X6
- A 2019 Mercedes-Benz V250 D,
- 2010 Caterpillar, backhoe loader
In the Heilbron Magistrates’ Court, a 51-year-old man, Ente Thibello Sekhoto and his company, Batlokoa Circle 12 Plaster Services were convicted and sentenced for fraud and money laundering.
“The SIU’s investigation found that Sekhoto fraudulently applied for relief funds on behalf of individuals who were not employed by his company, cheating the Unemployment Insurance Fund into paying R201 812.36 into his company's bank account. The Department of Employment and Labour suffered direct financial loss,” the SIU said.
The corruption busting unit said the conviction and preservation order “demonstrate the effectiveness of SIU investigations in ensuring accountability and restitution of stolen public funds.
“The SIU continues to work closely with law enforcement partners, including the Hawks and the National Prosecuting Authority, to ensure that perpetrators of corruption face the full might of the law. These outcomes reaffirm the commitment of law enforcement agencies to protecting public funds and restoring trust in institutions.
“The SIU is also authorised to initiate civil proceedings in the High Court or a Special Tribunal in its name to correct any wrongdoing uncovered during its investigation and to recover financial losses suffered by the State, including funds paid for services not rendered,” the SIU said. – SAnews.gov.za
