The Special Investigating Unit (SIU) together with police specialised units, the Hawks and the Tactical Response Team (TRT) are conducting search and seizure operations across KwaZulu-Natal and Gauteng as part of an investigation into the Unemployment Insurance Fund’s (UIF) COVID-19 Temporary Employer/Employee Relief Scheme (TERS).
According to the corruption busting unit, a “sophisticated syndicate” allegedly siphoned some R161 million from TERS with the investigation linked to 16 companies and 35 individuals.
“The SIU investigation…has uncovered evidence suggesting 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 received were not paid to workers; instead, they were distributed among syndicate members in patterns consistent with money laundering,” the SIU explained.
Teams involved in the raid are searching for “crucial evidence” including documents and digital evidence.
“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.
“As stipulated by the Special Investigating Units and Special Tribunals Act 74 of 1996, which governs the operations of the SIU, the unit will refer evidence pointing to criminal conduct to the National Prosecuting Authority for further action,” the SIU said.
Key persons of interest include:
- Thamsanqa Madlala: As a primary person of interest, Madlala’s company received R18 million in TERS funds. The SIU investigation reveals that payments were directed toward asset purchases for the alleged mastermind and other syndicate figures.
- Yolanda Nombuso Mgobo: Identified as a central figure who 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.
- Sphamandla Sokhela and Nhlakanipho Zondi (Attorney): Alleged proxies for Mngomezulu. Searches are being conducted in Pietermaritzburg and Edendale.
- Senzo Gumede: Director of companies (Amakhosana Contractors and Senzisipho Pty Ltd) used to launder funds, with searches in Durban and Pietermaritzburg.
- Sboniso Ronald Cele and Simtholile Dlamini: Alleged “runners”. Searches are focused on Port Shepstone and Johannesburg (Oakdene).
The SIU is also conducting searches at the UIF Head Office in Tshwane.
“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.
“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,” the SIU said. – SAnews.gov.za
