SIU welcomes arrests, convictions, and preservation of over R27 million in siphoned UIF-TERS funds
The Special Investigating Unit (SIU) welcomes the arrest and prosecution of suspects in Mpumalanga, the conviction and sentencing of a businessman in the Free State, and the preservation of assets obtained through the proceeds of crime. Together, these outcomes represent more than R27 million in UIF Temporary Employer/Employee Relief Scheme (TERS) funds that were siphoned from the State and are now preserved or recovered for the benefit of South Africans.
Mpumalanga Case: Ghost Employees, R26.9 Million Siphoned, and Preserved Assets
On Monday, 18 May 2026, Mr Fumu Mkalira Msiska (48), his wife, Gladness Mkhonto Msiska (48), and his brother-in-law, Bongani Zoran Mkhonto (39), appeared before the Middelburg Magistrate’s Court on charges of fraud involving ghost employees in the UIF-TERS scheme.
The court granted bail of R300 000 each to Mr and Mrs Msiska, while Mr Mkhonto was granted bail of R3 000.
The High Court of South Africa, Mpumalanga Division, issued a preservation order against assets suspected to be proceeds of crime. These include properties in Pretoria, Middelburg, and White River, as well as bank accounts, equipment, and household goods. These assets have been secured pending forfeiture.
Vehicles Seized:
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2019 Land Rover Range Rover L560
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2011 Toyota Fortuner
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2005 Mercedes-Benz C180 Kompressor
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2015 BMW X6
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2019 Mercedes-Benz V250D
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2010 Caterpillar backhoe loader
During the investigation, the National Prosecuting Authority’s Asset Forfeiture Unit secured the freezing of bank accounts and the seizure of five vehicles, along with the preservation of three properties and other assets.
The SIU investigation revealed that the accused siphoned R26 943 793.19 from the UIF-TERS scheme by fabricating employees and submitting fraudulent claims. These ghost employees were used to channel public funds into private hands, depriving genuine workers of relief during the COVID-19 pandemic.
UIF-TERS Claims (Six-Month Period):
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April 2020: 724 ghost employees
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May 2020: 587 ghost employees
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June 2020: 743 ghost employees
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July 2020: 763 ghost employees
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August 2020: 767 ghost employees
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September 2020: 773 ghost employees
It is further alleged that the funds were transferred from A and F Consulting to Khulani Quality Contribution, a company linked to Msiska’s wife. The brother-in-law, Mkhonto, allegedly acted as a runner by sourcing identification particulars used to facilitate fraudulent claims involving ghost employees and former workers of the company.
When the SIU and the Directorate for Priority Crime Investigation (HAWKS) interviewed some of the individuals from the North West and Mpumalanga whose details were used, it emerged that their information had been obtained through scams promising special grants, free driving licences, or stolen from the local Sheriff’s Office.
The consequence of stolen personal information has had real-life impact. In 2022, the Hawks in KwaZulu-Natal received a complaint from a member of the public who struggled to receive maternity benefits from the UIF after being informed that a company named Consulting Engineers had claimed UIF-TERS benefits on her behalf. She alleged that her information was used fraudulently and requested a police investigation. The matter was later referred to the Hawks in Mpumalanga, who requested the assistance of the SIU, as the unit already had an existing proclamation covering the matter.
Free State Case: Conviction and Repayment of R201 812
Meanwhile, in the Free State, the Heilbron Magistrates’ Court convicted and sentenced Mr Ente Thibello Sekhoto (51) and his company, Batlokoa Circle 12 Plaster Services (Pty) Ltd, for fraud and money laundering related to UIF-TERS benefits.
The SIU investigation found that Sekhoto fraudulently applied for relief funds on behalf of individuals who were not employed by his company, resulting in the UIF paying R201 812.36 into his company’s bank account. The Department of Employment and Labour suffered a direct financial loss.
In line with the SIU Act, the SIU referred evidence of criminal conduct to the National Prosecuting Authority (NPA) for further action. The NPA, working with the Hawks Serious Commercial Crime Investigation Unit, arrested Sekhoto. The court ordered Sekhoto and his company to jointly repay the National Department of Employment and Labour the amount of R201 812.36 within four years.
These developments highlight the SIU’s mandate under Proclamation R08 of 2021 to investigate maladministration and corruption in the UIF-TERS scheme, and to ensure that perpetrators face justice while unlawfully acquired assets are safeguarded.
The SIU continues to work closely with law enforcement partners, including the Hawks and the National Prosecuting Authority, to ensure that perpetrators of corruption face the full might of the law. These outcomes reaffirm the commitment of law enforcement agencies to protecting public funds and restoring trust in institutions.
The SIU is also authorised to initiate civil proceedings in the High Court or a Special Tribunal in its name to correct wrongdoing uncovered during investigations and to recover financial losses suffered by the State, including funds paid for services not rendered.
Media Enquiries:
Selby Makgotho
Spokesperson: Special Investigating Unit
Cell: 083 718 6128
Email: SIUMedia@siu.org.za
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