The Special Investigating Unit (SIU) has pounced on a number of businesses and individuals to conduct search and seizure operations across KwaZulu-Natal and Gauteng on Thursday. This is linked to the unit’s ongoing investigation into a sophisticated syndicate that allegedly siphoned about R161 million from the Unemployment Insurance Fund’s (UIF) Covid-19 Temporary Employer/Employee Relief Scheme (TERS). Spokesperson Kaiser Kganyago toldThe Witnessthat individual’s homes and offices were raided in various parts of the province including Pietermaritzburg and Portshepstone.
I’m in Portshepstone as we speak trying to locate an Mkhonto Wesizwe Party councillor who through his company siphoned about R16m from the R161m stolen from the government through Covid-19 TERS. “There are 16 companies and 35 individuals that we are after. They are all suspected to be central to the fraudulent scheme.
It’s 34 areas that we are focusing on in both provinces,” said Kganyago. In a statement later, Kganyago said the operation was supported by specialised units of the South African Police Service (SAPS), including the National Intervention Unit (NIU), the Directorate for Priority Crime Investigation (DPCI), commonly known as the Hawks, and the Tactical Response Team (TRT). The operation, authorised by a warrant issued by the Special Tribunal, targeted multiple premises, including offices, residences, and the UIF Head Office in Pretoria.
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It is linked to 16 companies and over 35 individuals suspected of being central to the fraudulent scheme. Kganyago said 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 teams are now searching for crucial evidence including documents such as original and copies of bank statements, fraudulent TERS applications, memoranda of understanding (MOUs) with UIF, and all related correspondence. We are also looking at digital evidence from computers (desktops, laptops), data storage devices, cellular phones, and network equipment belonging to or used by the targeted companies and individuals,” he said.
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