The Special Investigating Unit (SIU) welcomes the arrests by the Directorate for Priority Crime Investigation (Hawks) and subsequent start of prosecution of four people linked to the Temporary Employer/Employee Relief Scheme (TERS) fraud by creating ghost workers to claim funds from the Department of Labour.
The accused are from separate cases in the Eastern Cape and Free State Provinces. The four accused unduly claimed TERS funding from the Unemployment Insurance Fund (UIF), an agency of the Department of Labour. The government set up TERS as part of an intervention to rescue industries that were negatively affected by COVID-19. The arrests and prosecutions come after the SIU investigation.
The arrested people are:
Nomvuzo Melody Kupiso (49)
Tlotliso Molaba (38)
Lehlohonolo Class Motaung (38)
Lelokonyana Isak Letseng (44)
The case of Nomvuzo Melody Kupiso. The SIU’s investigation revealed that Khayathi and Ms Kupiso, in her capacity as the registered owner of Khayathi through the misrepresentation and intending to defraud the UIF unlawfully applied for the TERS benefits, on behalf of individuals that were no longer employed at Khayathi.
Khayathi and Ms Kupiso unlawfully and falsely made or created the proof of payments, which appeared to have been signed by the “employees” on receipt of the TERS benefit at the height of the COVID-19 pandemic. The individuals have not been employed at Khayathi since 2015. The UIF released the total payment in the amount of R216,905.95 to Khayathi.
On 23 January 2024, the SIU referred the matter to the relevant prosecuting authority. On 18 April 2024, Ms Kupiso was arrested and appeared on the same day before the King Wiliams Magistrates Court, Eastern Cape, on fraud, forgery, and uttering allegations. Ms Kupiso was released on R1 500 bail.
The case of Molaba, Motaung and Letseng The SIU found that two companies known as Afrikhan Source (Pty) Ltd owned by Molaba and Motaung and Izuz Gibbor (Pty) Ltd owned by Letseng applied for the COVID–19 TERS online during two different periods.
Between March 2020 and October 2020, Afrikhan Source applied for COVID–19 TERS on behalf of individuals allegedly affected by the COVID–19 pandemic. The UIF made nine payments amounting to approximately R1 396,053,40 to the company’s account between September 2020 and December 2020.
Between July 2020 and October 2021, Izuz Gibbor made applications for COVID-19 TERS on behalf of certain individuals who claimed to be affected by the pandemic. The company received nine payments from UIF, amounting to an estimated total of R101 555.92, in this period. However, it was discovered that the applicants never worked for either of the two companies.
The SIU referred the matter to the prosecuting authority. The suspects were arrested in Bloemfontein and Phuthaditjhaba, Free State, on 25 April 2024. They were granted R10 000 bail each and the matter has been postponed to 11 June 2024.
The SIU was authorised by President Cyril Ramaphosa to investigate allegations made in respect of the affairs of the UIF in terms of Proclamation R.8 of 2021. The SIU investigated TERS payments to persons who were not entitled to receive such payments; and submitted false, irregular, invalid or defective applications to the UIF, including the causes of such maladministration.
In line with the SIU Act, the SIU referred evidence pointing to criminal conduct to the National Prosecuting Authority (NPA) for further action. The referral resulted in a criminal case being registered with the Hawks.
Enquiries:
Kaizer Kganyago
SIU Spokesperson
Cell: 082 306 8888
E-mail: kkganyago@siu.org.za
