Pretoria: 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.
According to South African Government News Agency, in Mpumalanga, three people appeared in the Middelburg Magistrate's Court on charges of fraud involving ghost employees in the UIF-TERS scheme. The accused, 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,' the SIU explained.
The funds were reportedly transferred from A and F Consulting to Khulani Quality Contribution, a company linked to Msiska's wife, with Mkhonto allegedly acting as a runner by sourcing identification particulars for fraudulent claims. During investigations by the SIU and the Hawks, it was found that some people's details used for these claims were obtained through scams promising special grants or stolen from the local Sheriff's office. The husband-and-wife duo were granted R300,000 bail, while Mkhonto received a 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 properties in Pretoria, Middelburg, and White River, along with household goods, office equipment, and bank accounts. Additional frozen assets include a 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, and a 2010 Caterpillar backhoe loader.
In the Heilbron Magistrates' Court, Ente Thibello Sekhoto and his company, Batlokoa Circle 12 Plaster Services, were convicted and sentenced for fraud and money laundering. The SIU's investigation revealed that Sekhoto fraudulently applied for relief funds on behalf of individuals not employed by his company, causing the Unemployment Insurance Fund to pay R201,812.36 into his company's bank account, leading to a direct financial loss for the Department of Employment and Labour.
The SIU emphasized that the conviction and preservation order demonstrate the effectiveness of their investigations in ensuring accountability and restitution of stolen public funds. The unit continues to collaborate with law enforcement partners, including the Hawks and the National Prosecuting Authority, to ensure that perpetrators of corruption face the full extent of the law. These outcomes reaffirm the commitment of law enforcement agencies to protect public funds and restore trust in institutions.
The SIU is also authorized 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.