The Special Investigating Unit (SIU) conducted search and seizure operations across KZN and Gauteng today.

The Witness reports that the operations stem from the SIU’s ongoing investigation into a sophisticated syndicate that allegedly siphoned about R161m from the Unemployment Insurance Fund’s (UIF) Covid-19 Temporary Employer/Employee Relief Scheme (Ters).

Spokesperson Kaiser Kganyago told The Witness that people’s homes and offices were raided in various parts of KZN, including Pietermaritzburg and Port Shepstone.

“I’m in Port Shepstone as we speak, trying to locate an Mkhonto Wesizwe Party councillor who, through his company, siphoned about R16m from the R161m stolen from the government through Covid-19 Ters.

“There are 16 companies and 35 individuals that we are after. They are all suspected to be central to the fraudulent scheme. It’s 34 areas that we are focusing on in both provinces,” said Kganyago.

In a statement later, Kganyago said the operation was supported by specialised units of the SAPS, including the National Intervention Unit, the Directorate for Priority Crime Investigation, commonly known as the Hawks, and the Tactical Response Team.

The operation, authorised by a warrant issued by the Special Tribunal, targeted multiple premises, including offices, residences and the UIF head office in Pretoria.

It is linked to 16 companies and over 35 people suspected of being central to the fraudulent scheme.

Kganyago said the SIU investigation has uncovered evidence suggesting a well-organised syndicate orchestrated the submission of false Ters applications on behalf of people who were not employees of the applicant companies.

The substantial funds received were not paid to workers; instead, they were distributed among syndicate members in patterns consistent with money laundering.

“The SIU teams are now searching for crucial evidence, including documents such as original and copies of bank statements, fraudulent Ters applications, memoranda of understanding with UIF, and all related correspondence. We are also looking at digital evidence from computers (desktops, laptops), data storage devices, cellular phones and network equipment belonging to or used by the targeted companies and individuals,” he said.

The three primary targets in both provinces are Nakomang Trading Enterprise (Gauteng), which is alleged to have received R19 183 197.34; Lubelo Hlomuka Holdings t/a SA Scrum Assembly (KZN/Gauteng), which received R15,917,398.98; and Bokoharama Construction (KZN), which received R18 197 289.94. Its director is a key person of interest and a local councillor at the Ray Nkonyeni Municipality.

Other major companies searched include Aventador Gate (Pretoria), which received R3.8m, and several based in KZN.

An attorney is also alleged to be one of the persons of interest in the investigation.

The SIU is also searching the UIF Head Office at 230 Lillian Ngoyi Street, Pretoria.

“The investigation has identified several officials whose possible involvement is being probed to determine whether they facilitated fraudulent applications, bypassed audits, or cleared ‘victim’ profiles from the UIF system.

“The seized evidence will undergo forensic analysis to support the investigation, and the SIU will pursue civil action to correct any wrongdoing identified and recover financial losses suffered by the state. As stipulated by the Special Investigating Units and Special Tribunals Act 74 of 1996, which governs the operations of the SIU, the unit will refer evidence pointing to criminal conduct to the National Prosecuting Authority for further action,” said Kganyago in the statement.

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