The Special Investigating Unit (SIU) has swooped in on properties across KwaZulu-Natal and Gauteng in a search-and-seizure operation targeting a syndicate accused of syphoning R161m from the Unemployment Insurance Fund’s (UIF) Covid-19 Temporary Employer/Employee Relief Scheme (TERS). SIU spokesperson Kaizer Kganyago said the operation was authorised by a warrant issued by the Special Tribunal and extended to offices, private homes and the UIF head office in Pretoria. The substantial funds received were not paid to workers; instead, they were distributed among syndicate members in patterns consistent with money laundering.
“It is linked to 16 companies and over 35 individuals suspected of being central to the fraudulent scheme, including Thamsanqa Madlala, a key person of interest and director of Bokoharama Construction,” he said. According to the SIU, the investigation points to a well-organised network that submitted false TERS applications on behalf of people who were never employed by the beneficiary companies. “The substantial funds received were not paid to workers; instead, they were distributed among syndicate members in patterns consistent with money laundering,” Kganyago said.
Officers seized bank statements, fraudulent applications, memoranda of understanding with the UIF, correspondence and a wide range of digital devices, including desktops, laptops, cellphones, data storage devices and network equipment. Kganyago said the operation focused on three main clusters across the two provinces, which are Nakomang Trading Enterprise in Gauteng, which received R19.18m. Searches were conducted at its Sunninghill offices and linked residences in Rosettenville and Kenilworth, south of Johannesburg.
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The unit is also focusing on Lubelo Hlomuka Holdings, trading as SA Scrum Assembly (KZN/Gauteng), which received R15.92m. “Its director, Nhlakanipho Mngomezulu, is identified by the SIU as the syndicate’s alleged mastermind.” Raids took place in Pietermaritzburg, Durban (Kenville), Sandton and Fourways.
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