The Special Investigating Unit (SIU) has secured an order from the Special Tribunal that freezes the assets of Mr Nhlakanipho Mngomezulu following the unlawful receipt of Temporary Employer/Employee Relief Scheme (TERS) funds.
The order follows an SIU investigation, which revealed that Lubelo Hlomuka Holdings, trading as SA Scrum Assembly, of which Mngomezulu is the director, unlawfully received approximately
R16,362,525.29 from the Unemployment Insurance Fund (UIF), administered by the Department of Employment and Labour, through a sophisticated fraudulent scheme. Between 2020 and 2022, shortly after receiving the funds, he went on a shopping spree, purchasing vehicles in cash. In addition, he and his company acquired four immovable properties, primarily in Pietermaritzburg,
KwaZulu-Natal, using the misappropriated funds.
The immovable properties subject to the preservation order:
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Two properties in Glyndale, Kwa-Zulu Natal (KZN)Four apartments in Pietermaritzburg, KZN
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One property in Zeekoe Vallei, Ethekwini, KZN
The vehicles affected by the order include:
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Volkswagen VN 750 Caravelle
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KIA K2700,
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Toyota Avanza
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Ford Ranger
Bank accounts linked to Mngomezulu and SA Scrum Assembly have also been frozen. Protecting the public interest and assets through prevention measures and systemic investigations to eradicate fraud, maladministration, and corruption.
The SIU’s investigation found that the TERS funds were misappropriated through the use of ghost employees and diverted from their intended purpose of supporting workers affected by the COVID- 19 lockdown. Analysis of bank records confirmed that SA Scrum Assembly received 45 paymentsfrom the UIF, with no evidence that employee salaries were paid. Funds were instead channelledthrough other accounts in a pattern that appears to be a money-laundering scheme.
Furthermore, the SIU’s investigation revealed that Mngomezulu personally benefited from the scheme, receiving more than R5 million in multiple payments derived from the TERS funds.
In November 2025, the SIU approached the Special Tribunal, seeking preservation orders over the identified properties, vehicles, and bank accounts, with a view to ultimately forfeiting these assets to the State.
The President of the Special Tribunal, Judge Margaret Victor, granted an interim order prohibitingMngomezulu from selling, disposing of, transferring, leasing, or otherwise dealing with the identified assets pending the finalisation of the matter.
President Cyril Ramaphosa authorised the SIU to investigate allegations made in respect of the affairs of the Unemployment UIF in terms of Proclamation R.8 of 2021. The SIU investigated TERS payments to persons who were not entitled to receive such payments; submitted false, irregular, invalid or defective applications to the UIF, including the causes of such maladministration.
The SIU remains committed to holding accountable those who unlawfully benefit from public funds and to ensuring that monies intended for workers during the COVID-19 pandemic are recovered.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action.
The SIU is also authorised 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.
Enquiries:
Selby Makgotho
Spokesperson: Special Investigating Unit
Cell: 083 718 6128
E-mail: SIUMedia@siu.org.za
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