Hillcrest property linked to alleged R9.8m UIF TERS fraud frozen

A Hillcrest property valued at R2.7 million has been frozen by the Special Tribunal after it was linked to the alleged fraudulent abuse of the Unemployment Insurance Fund’s (UIF) Temporary Employer/Employee Relief Scheme (TERS) during the Covid-19 pandemic. The Special Investigating Unit (SIU) said the property is connected to Ziqoqe Construction CC and forms part of an ongoing investigation into alleged fraud involving UIF TERS payments worth more than R9.8 million. In a statement, the SIU welcomed the preservation order granted by the Special Tribunal, which prevents the property from being sold, transferred or encumbered while the matter is under investigation.

However, investigators allege that none of the claimed employees received the funds. “The SIU investigation found that Luthuli did not pay any of the alleged 673 employees and failed to refund UIF,” the unit said. Investigators further found that many of the listed employees were “ghost employees”, while several people contacted during the investigation denied ever working for the company.

The SIU said a property in the Sienna Estate Scheme in Hillcrest, eThekwini, was purchased in November 2023 through what it described as purported fraudulent transactions. Investigators believe the property, valued at R2.7 million, may have been acquired using proceeds derived from the alleged unlawful UIF claims.