The Special Investigating Unit (SIU) continues to claw back State funds obtained through fraudulent Unemployment Insurance Fund’s Temporary Employer/Employee Relief Scheme (UIF TERS) claims through a freezing order on a R2.7 million KwaZulu-Natal property.
The preservation order was granted by the Special Tribunal following an application by the corruption-busting unit.
“The property is linked to Ziqoqe Construction CC. It is connected to the alleged fraudulent abuse of [UIF TERS] during the COVID-19 pandemic. The SIU investigation revealed that Ndabezinhle Luthuli, the owner of Ziqoqe Construction, submitted TERS applications on behalf of alleged employees of the company for the ‘shutdown’ periods between 27 March 2020 and 15 August 2020.
“The investigation established that the UIF paid a total of R9,836,047.06 in TERS benefits to Ziqoqe Construction between 21 July 2020 and 30 September 2024. However, the SIU’s investigation found that Luthuli did not pay any of the alleged 673 employees and failed to refund UIF,” the SIU said.
Furthermore, a portion of the employees listed were found to be ghost employees and “several individuals contacted by investigators denied ever working for the company”.
“The SIU discovered that a property…was purchased in November 2023 through purported fraudulent transactions, suggesting that the profits from illegal activities were utilised to benefit Luthuli.
“As part of its ongoing investigation, the SIU conducted search-and-seizure operations on 12 December 2025 against associated individuals and entities.
“The Tribunal has since granted an order directing the deeds registry to restrict the immovable property registered in the name of Luthuli,” the unit added.
The property may not be sold, transferred, or encumbered without “written agreement between the parties or an order from the court or Tribunal”.
“The Tribunal further ordered that Luthuli and Ziqoqe Construction remain responsible for all financial obligations related to the property, including levies, insurance, and associated costs, while the matter is pending. The costs of the application were reserved for determination at a later stage.
“The SIU remains committed to recovering public funds lost through corruption and maladministration, and to ensuring accountability for those who sought to exploit relief measures intended to support businesses and workers during the COVID-19 pandemic,” the SIU concluded. – SAnews.gov.za
