Key Takeaways
- The Special Investigating Unit (SIU) has arrested, prosecuted and convicted suspects linked to the theft of more than R27 million from the UIF Temporary Employer/Employee Relief Scheme (TERS).
- In Mpumalanga, a scheme involving hundreds of “ghost employees” allegedly siphoned nearly R26.9 million, leading to asset preservation orders and the seizure of properties, vehicles and bank accounts.
- A separate Free State case resulted in the conviction of businessman Ente Thibello Sekhoto, who was ordered to repay over R200 000 fraudulently claimed from TERS.
- Fraudsters obtained personal information through scams promising grants or free licences, and even stole data from local sheriff’s offices, causing genuine workers to lose access to relief benefits.
- The SIU’s actions are mandated by Proclamation R08 of 2021, and it continues to work with the Hawks and the National Prosecuting Authority to ensure perpetrators face the full force of the law.
Overview of SIU’s crackdown on Covid-19 relief fraud
The Special Investigating Unit (SIU) announced that its net is tightening around individuals who exploited the Covid‑19 relief landscape. Through coordinated investigations, the SIU has secured arrests, prosecutions and convictions of suspects implicated in the misappropriation of more than R27 million from the UIF Temporary Employer/Employee Relief Scheme (TERS). In addition to criminal proceedings, the unit has moved to freeze luxury vehicles, properties and bank accounts that are suspected to be proceeds of the fraud, pending possible forfeiture. These actions underscore the SIU’s commitment to dismantle networks that diverted public funds meant for vulnerable workers during the pandemic and to restore accountability in the administration of emergency relief programmes.
Mpumalanga case: ghost employees scheme
In Mpumalanga, the SIU uncovered a sophisticated fraud centred on the creation of “ghost employees.” The Middelburg Magistrate’s Court heard allegations that Fumu Mkalira Msiska, his wife Gladness Mkhonto Msiska, and his brother‑in‑law Bongani Zoran Mkhonto fabricated employee details and submitted false claims to loot millions from the UIF‑TERS fund. According to the SIU, the trio siphoned R26 943 793.19 from the scheme over a six‑month window between April and September 2020. Investigators estimate that between 587 and 773 fictitious employees were added to the payroll each month, allowing the conspirators to channel state money into private accounts while genuine workers were left without the relief they desperately needed.
Asset preservation and seizures
Following the revelation of the alleged fraud, the High Court in Mpumalanga issued a preservation order against assets believed to be proceeds of the crime. Authorities have secured three properties located in Pretoria, Middelburg and White River, alongside numerous bank accounts, equipment and household goods, all earmarked for possible forfeiture. Among the seized assets are five high‑value vehicles: a 2019 Land Rover Range Rover L560, a BMW X6, a Mercedes‑Benz V250D, a Toyota Fortuner and a Caterpillar backhoe loader. These measures aim to prevent the dissipation of illicit gains and to ensure that, should the court order forfeiture, the state can recover the misappropriated funds for redistribution to legitimate beneficiaries.
Methodology of fraud: creation of ghost employees and identity theft
The SIU’s investigation revealed that the fraudsters did not merely invent names; they obtained real personal information through deceptive means. Interviews conducted with individuals from North West and Mpumalanga whose details were used showed that their data had been harvested via scams promising special grants, free driving licences, or, in some cases, stolen directly from local sheriff’s offices. This illicit acquisition of identity documents enabled the creation of convincing ghost employee profiles, which were then used to submit fraudulent UIF‑TERS claims. One stark illustration of the harm caused involved a KwaZulu‑Natal woman who discovered that her personal information had already been used to claim maternity UIF benefits, leaving her unable to access the support she was entitled to during a critical period.
Free State conviction: businessman Ente Thibello Sekhoto
In a parallel development, the Heilbron Magistrates’ Court convicted Free State businessman Ente Thibello Sekhoto and his enterprise, Batlokoa Circle 12 Plaster Services, on charges of fraud and money laundering linked to UIF‑TERS payments. The SIU found that Sekhoto falsely claimed relief funds on behalf of individuals who were not employed by his company, resulting in unlawful payments totalling R201 812.36. The court ordered Sekhoto and his company to repay the Department of Employment and Labour within four years. This case highlights that the abuse of the TERS scheme was not limited to large‑scale networks; individual entrepreneurs also exploited the programme for personal gain, necessitating vigilant oversight across all sectors of the economy.
Legal framework and SIU mandate
The SIU’s actions are grounded in Proclamation R08 of 2021, which mandates the unit to investigate maladministration and corruption within the UIF‑TERS scheme and to ensure that perpetrators face justice while unlawfully acquired assets are safeguarded. The SIU emphasized that it will continue to collaborate closely with the Directorate for Priority Crime Investigation (HAWKS) and the National Prosecuting Authority to build robust cases that withstand judicial scrutiny. By leveraging this legislative mandate, the SIU aims to deter future abuse of emergency relief funds and to reinforce public confidence in the integrity of state‑supported programmes.
Broader implications and ongoing efforts
Beyond the immediate legal outcomes, the SIU’s crackdown sends a clear signal that fraudulent exploitation of pandemic relief will not be tolerated. The preservation of assets, the recovery of funds, and the prosecution of offenders serve both punitive and preventative functions, discouraging would‑be fraudsters from attempting similar schemes. The SIU affirmed its commitment to maintaining investigative pressure, stating that it will pursue any leads that emerge and will work tirelessly to ensure that those involved in corruption “face the full might of the law.” Continued vigilance, inter‑agency cooperation, and public awareness are essential components of a strategy designed to protect scarce public resources for those who truly need them.
Conclusion
The SIU’s recent successes—ranging from the dismantling of a multi‑million‑rand ghost employee network in Mpumalanga to the conviction of a Free State businessman for fraudulent TERS claims—demonstrate a resolute response to Covid‑19 relief fraud. Through asset freezes, preservation orders, and rigorous prosecutions, the unit is not only holding perpetrators accountable but also seeking to restore the flow of relief to legitimate beneficiaries. As the SIU continues its work alongside the Hawks and the NPA, the overarching goal remains clear: safeguard public funds, uphold the rule of law, and ensure that emergency support reaches those it was intended to help.