UIF backs SIU raids in R161 million TERS fraud probe

The Unemployment Insurance Fund (UIF) has expressed its full support for the Special Investigating Unit (SIU) following early morning raids on Thursday targeting a syndicate accused of siphoning approximately R161 million from the Covid-19 Temporary Employer/Employee Relief Scheme. The operation, conducted across Gauteng and KwaZulu-Natal, involved coordinated searches at offices, private residences, and the UIF Head Office in Pretoria.

UIF spokesperson Trevor Hattingh said the fund would cooperate fully with investigators to ensure those responsible are held accountable. “The UIF fully supports the ongoing investigation by the SIU into alleged fraud relating to TERS. We remain committed to assisting the SIU and relevant law enforcement agencies in any way necessary to bring anyone implicated to justice,” Hattingh said.

The SIU confirmed that the raids were authorised by the Special Tribunal and carried out with the assistance of the SAPS National Intervention Unit, the Hawks, and the Tactical Response Team. Investigators executed search warrants at multiple locations to recover documents, bank statements, fraudulent TERS applications, correspondence, computers, mobile devices, data storage equipment, and network systems that could provide evidence in the probe.

According to the SIU, the investigation, conducted under Proclamation R8 of 2021, has uncovered a well-organised scheme in which companies submitted TERS claims on behalf of individuals who were not employees. The funds, which were meant to support workers during the Covid-19 pandemic, were allegedly diverted to syndicate members and used in transactions consistent with money laundering.

SIU spokesperson Kaizer Kganyago said several companies were central to the operation. Among them is Nakomang Trading Enterprise in Gauteng, which received over R19 million in TERS payments. Investigators searched the company’s offices in Sunninghill as well as associated homes in Rosettenville and Kenilworth. Another company under scrutiny is Lubelo Hlomuka Holdings, also known as SA Scrum Assembly, which operates in KwaZulu-Natal and Gauteng and received more than R15.9 million. The SIU has identified its director, Nhlakanipho Mngomezulu, as the alleged mastermind of the syndicate. Searches connected to this company were conducted in Pietermaritzburg, Durban (Kenville), Sandton, and Fourways.

Bokoharama Construction in KwaZulu-Natal, which received over R18.1 million, was also among the properties searched. Its director, Thamsanqa Madlala, who is also a councillor at the Ray Nkonyeni Municipality, is a key person of interest. Investigators visited properties in Port Shepstone, including Anerley and Margate. Additional searches included Aventador Gate in Pretoria, which received R3.8 million, as well as other companies across KwaZulu-Natal.

The UIF’s statement of support comes as the SIU continues to collect and analyse evidence to trace the flow of funds and identify all individuals involved. Hattingh said the fund remains committed to ensuring that any wrongdoing is addressed and that the financial integrity of TERS is protected.

“The UIF will continue to work closely with the SIU and law enforcement to ensure that all evidence is made available and that anyone implicated is held accountable,” Hattingh said.

The raids mark a significant step in the ongoing investigation into Covid-19 relief fraud, with authorities aiming to recover state funds and reinforce confidence in public financial management.