Hillcrest property frozen as SIU probes R9.8m UIF TERS fraud
The SIU says the R2.7m Hillcrest property in the Sienna Estate Scheme was bought in November 2023 through purported fraudulent transactions.
THE Special Investigating Unit (SIU) has welcomed the judgment from the Special Tribunal, which granted a preservation order to freeze a Hillcrest property valued at R2.7m.
In a statement on Tuesday, the SIU said the property is linked to Ziqoqe Construction CC.
“It is connected to the alleged fraudulent abuse of the Unemployment Insurance Fund’s Temporary Employer/Employee Relief Scheme (UIF TERS) during the Covid-19 pandemic,” the statement reads.
According to the SIU, its investigation revealed that Ndabezinhle Luthuli, the owner of Ziqoqe Construction, submitted TERS applications on behalf of alleged employees of the company for the “shutdown” periods between March 27, 2020 and August 15, 2020.
“The investigation established that the UIF paid a total of R9 836 047.06 in TERS benefits to Ziqoqe Construction between 21 July 2020 and 30 September 2024. However, the SIU’s investigation found that Luthuli did not pay any of the alleged 673 employees and failed to refund UIF.
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“Many of the listed employees were found to be “ghost employees”, and several individuals contacted by investigators denied ever working for the company.
“The SIU discovered that a property worth R2 700 000 situated in the Sienna Estate Scheme in Hillcrest, eThekwini Municipality, KwaZulu-Natal, was purchased in November 2023 through purported fraudulent transactions, suggesting that the profits from illegal activities were utilised to benefit Luthuli.
“The Tribunal has since granted an order directing the deeds registry to restrict the immovable property registered in the name of Luthuli.
“The property may not be sold, transferred, or encumbered without a written agreement between the parties or an order from the court or Tribunal
“The Tribunal further ordered that Luthuli and Ziqoqe Construction remain responsible for all financial obligations related to the property, including levies, insurance, and associated costs, while the matter is pending. The costs of the application were reserved for determination at a later stage,” said the SIU.
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