SIU recovers R71m linked to TERS fraud
Several companies allegedly received funding through the Temporary Employer/Employee Relief Scheme (TERS), even though they were unaffected by the pandemic.
The Special Investigating Unit (SIU) has recovered at least R71m from companies that unduly claimed from the Unemployment Insurance Fund’s (UIF) Temporary Employer/Employee Relief Scheme (TERS).
This comes after the corruption-busting unit commenced investigations into TERS funding in June 2021.
According to a statement issued by the SIU, the unit was authorised by President Cyril Ramaphosa to investigate allegations made in respect of the affairs of the UIF in terms of Proclamation R.8 of 2021.
The SIU investigated TERS payments to persons who were not entitled to receive such payments and submitted false, irregular, invalid, or defective applications to the UIF, including the causes of such maladministration.
The government set up TERS in order to assist struggling companies during the Covid-19 pandemic.
“To date, the SIU has recovered cash to the value of approximately R71.4m since it commenced with investigations. The figure includes R9.9m that was paid directly to the UIF by companies,” reads the statement.
The unit says some of the companies that paid money directly to UIF include South African Airways Technical, which paid back R8.8m, and RH Matjhabeng Hospital, a private hospital in Free State, among others. The hospital paid back R488 458.21.
“The SIU investigation revealed that the hospital was not supposed to have applied for and received TERS funds as their operations were not affected by Covid-19. The hospital management confirmed that it unduly received the funds and agreed to pay back the money to the SIU. Immediately after an agreement was reached, the hospital deviated from the agreement held with the SIU and paid back the money directly into the UIF account instead of the SIU,” the unit adds.
“The unit has referred any evidence of criminality to the NPA for possible prosecution.”
The unit says on February 27, the East London Magistrate’s Court sentenced a Zimbabwean citizen, Admirer Sibanda, to one year imprisonment and ordered that after serving the sentence he should be deported to his country of origin.
Sibanda pleaded guilty to the identity theft charge, which was used to commit TERS fraud. – SAnews.gov.za
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