Pretoria: The Special Investigating Unit (SIU), in collaboration with police specialised units, the Hawks, and the Tactical Response Team (TRT), is actively conducting search and seizure operations in KwaZulu-Natal and Gauteng. These efforts are part of an extensive investigation into the Unemployment Insurance Fund’s (UIF) COVID-19 Temporary Employer/Employee Relief Scheme (TERS).
According to South African Government News Agency, a sophisticated syndicate is alleged to have siphoned approximately R161 million from TERS, implicating 16 companies and 35 individuals. The SIU’s investigation has uncovered evidence suggesting that the syndicate orchestrated the submission of fraudulent TERS applications for individuals who were not actual employees of the applicant companies. The funds, instead of being disbursed to workers, were allegedly distributed among syndicate members in a manner consistent with money laundering.
The teams involved in the raid are seeking crucial evidence, including both documents and digital records. The SIU has stated that the seized evidence will undergo forensic analysis to bolster the investigation. Furthermore, the SIU intends to pursue civil action to rectify any wrongdoing identified and to recover financial losses incurred by the State. In accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer evidence indicating criminal conduct to the National Prosecuting Authority for further action.
Key persons of interest in this investigation include Thamsanqa Madlala, whose company received R18 million in TERS funds. The investigation reveals that these payments were directed towards asset purchases for the alleged mastermind and other syndicate members. Yolanda Nombuso Mgobo has been identified as a central figure who received and distributed over R18.6 million in syndicate funds, with searches currently underway at her residences in Scottburgh and Amanzimtoti, as well as at premises linked to her fianc©.
Additional searches are being conducted in relation to Sphamandla Sokhela and Nhlakanipho Zondi, who are alleged proxies for Mngomezulu, with operations focused in Pietermaritzburg and Edendale. Senzo Gumede, a director of companies used to launder funds, is also under investigation, with searches taking place in Durban and Pietermaritzburg. Sboniso Ronald Cele and Simtholile Dlamini, identified as alleged ‘runners,’ are the focus of searches in Port Shepstone and Johannesburg (Oakdene).
The SIU is also conducting searches at the UIF Head Office in Tshwane to determine if any officials were involved in facilitating fraudulent applications, bypassing audits, or clearing profiles from the UIF system. President Cyril Ramaphosa authorised the SIU to investigate the allegations regarding the Unemployment UIF under Proclamation R.8 of 2021. The investigation addresses TERS payments made to individuals who were not entitled to receive them, alongside the submission of false, irregular, invalid, or defective applications to the UIF.