Key Takeaways
- Nikluis Manuel, director of Nako Mang Trading Enterprise CC, fraudulently obtained R19.1 million from the UIF Temporary Employer/Employee Relief Scheme (TERS) between 2020 and 2023.
- Shortly after receiving the funds in October 2022, Manuel used the money to buy a truck, a Hyundai H1, a Mercedes‑Benz W205, a trailer, and to transfer R570 000 to his partner for an apartment purchase.
- Affidavits showed that the purported employees listed in the TERS application were never actually employed by the company, indicating a deliberate misrepresentation.
- The Special Investigating Unit (SIU) identified the flow of funds as a classic money‑laundering pattern: placement (receipt of illicit cash), layering (vehicle and property purchases), and integration (transfer to associates).
- The SIU secured preservation orders from the Special Tribunal, preventing Manuel and his company from selling, transferring, or encumbering the identified assets, and instructed the Registrar of Deeds to place caveats on title deeds.
- SIU spokesperson Selby Makgotho emphasized that the investigation aims to recover the full loss to the UIF—estimated at over R148.4 million across multiple fraudulent TERS claims—and to hold beneficiaries accountable.
- The SIU retains authority to institute civil proceedings in the Special Tribunal to correct wrongdoing and reclaim state funds.
- The case underscores the importance of robust oversight of pandemic‑relief programs and the swift use of asset‑preservation mechanisms to deter dissipation of illicit proceeds.
Overview of the Alleged Fraud
Shortly after receiving R19 million in employee relief funds through the Temporary Employer/Employee Relief Scheme (TERS), Nikluis Manuel, the director of Nako Mang Trading Enterprise CC, embarked on a series of high‑value cash purchases. The funds, which were intended to support workers adversely affected by the COVID‑19 pandemic, were instead redirected to personal assets and associates within a matter of months. This rapid conversion of public money into private wealth triggered the attention of the Special Investigating Unit (SIU), which launched a forensic probe into the company’s TERS application and subsequent financial movements.
Fraudulent TERS Claim and Receipt of Funds
According to the SIU’s statement, Nako Mang Trading Enterprise fraudulently applied for UIF TERS benefits between 2020 and 2023 by misrepresenting employment relationships. Affidavits from the individuals listed as employees confirmed that they had never been employed by the company, meaning the basis for the claim was entirely fabricated. Despite this, the Unemployment Insurance Fund (UIF) disbursed R19.1 million to the company in October 2022, under the assumption that the money would be used to remunerate genuine workers during the pandemic lockdowns.
Immediate Asset Purchases by Manuel
Within weeks of the funds landing in the company’s account, Manuel used a portion of the money to purchase a truck outright in cash. This initial purchase signaled the beginning of a pattern where large sums were moved quickly from the corporate account into tangible, movable assets. The speed of the transaction—occurring before any legitimate payroll could be processed—raised immediate red flags for investigators tracing the flow of the relief money.
Subsequent Vehicle Acquisitions and Transfer to Partner
Seven months after the truck purchase, Manuel acquired a Hyundai H1, also paid for in cash. Five months later, in October 2023, he added a Mercedes‑Benz W205 and a trailer to his personal fleet, again settling the amounts in cash. In the same month, he transferred R570 000 to his partner, Khanyi Angel Nokukhanya, to facilitate the purchase of an apartment in Turfontein, south of Johannesburg. Notably, the apartment was situated next to Nokukhanya’s existing residence, suggesting a coordinated effort to consolidate property holdings within the couple’s immediate circle.
Layering, Integration, and Money‑Laundering Indicators
The SIU’s spokesperson, Selby Makgotho, characterized the sequence of transactions as a classic money‑laundering scheme: placement (receipt of the illicit TERS funds), layering (purchasing vehicles and real estate to obscure the money’s origin), and integration (shifting funds to associates and securing assets that could later be liquidated or used as collateral). By moving the money through multiple high‑value purchases and third‑party transfers, Manuel attempted to disguise the unlawful origin of the public funds and embed them within the legitimate economy.
Investigation Findings and SIU Statements
Makgotho emphasized that the SIU’s investigation revealed a systematic diversion of TERS benefits: instead of paying workers as required, the funds were funneled into the personal accounts of directors and their affiliates. He noted that downstream beneficiaries included Nokukhanya, who received the substantial transfer for the apartment purchase. The SIU reiterated its commitment to holding accountable anyone who unlawfully profits from public relief programs and to ensuring that money earmarked for pandemic‑affected workers is recovered.
Legal Actions: Preservation Orders and Title Deed Restrictions
In response to the evidence, the Special Tribunal granted preservation orders preventing Manuel and Nako Mang Trading Enterprise from selling, transferring, or encumbering the identified assets. The Registrar of Deeds was instructed to place restrictions on the title deeds and to register caveats, thereby blocking any disposal of the properties without the Tribunal’s explicit approval. These measures aim to secure the assets pending the outcome of civil recovery proceedings and to prevent the dissipation of proceeds that could otherwise be hidden or sold off.
Broader Impact, Recovery Efforts, and Conclusion
Makgotho disclosed that the SIU intends to pursue civil recovery to restitute the losses suffered by the UIF, which exceed R148.4 million when considering all companies implicated in fraudulent TERS claims across the sector. The SIU is further empowered to institute civil proceedings in the Special Tribunal to rectify wrongdoing uncovered during its investigation and to reclaim state funds paid for services that were never rendered. This case serves as a stark reminder of the vulnerabilities inherent in emergency relief schemes and underscores the necessity of stringent verification, real‑time monitoring, and swift asset‑freezing mechanisms to safeguard public money from exploitation.