Hawks nab Covid-19 Ters fraudsters in Gauteng and North West

At least 16 suspects have been arrested in connection Covid-19 Temporary Employer/ Employee Relief Scheme fund (Ters).

The alleged criminals were handcuffed in the early hours of Sunday morning.

Suspects

Police spokesperson Warrant Officer Bonnie Nxumalo said the suspects were arrested in Gauteng and the North West province.

“The suspects aged between 23 and 57 were arrested during an operation by the team of Hawks’ Serious Commercial Crime Investigation (SCCI) based in North West, Hawks’ Tactical Operations Management Section (TOMS) and Hawks’ Priority Crime Specialised Investigation (PCSI) assisted by the office of the Director of Public Prosecutions (DPP).”

Nxumalo said the crime was committed in 2020.

ALSO READ: UIF on a mission to claw back fraudulently claimed Covid-19 TERS funds

Fraud

“It is alleged three sole directors of three different dormant entities applied for Ters funds from the Department of Employment and Labour for 47, 133 and 141 supposed employees [respectively]. 

“The department paid the funds to companies’ bank accounts. The funds were allegedly transferred to certain individuals for personal enrichment. The department suffered a total loss of more than R1.4 million due to siphoning activities. The Hawks investigated the matters and warrants of arrests were issued,” Nxumalo said.

The suspects are expected to appear in the Mahikeng District Court on 28 November 2022 facing charges of fraud. 

Couple convicted

Earlier this year, a Gauteng-based couple were convicted of defrauding the Unemployment Insurance Fund (UIF) Covid-19 Ters out of more than R10 million.

Directors at Denmeng Trading, 37-year-old Morko Moremi and his 34-year-old wife Treasure Moremi, were recently found guilty of fraud by the Pretoria Specialised Commercial Crimes Court.

The couple had applied for Covid-19 Ters for 553 workers, but they only had 22 employees on their payroll.

Recoup money

In June the UIF said it was on a mission to get back money fraudulently claimed through the Ters scheme over the past few years.

In 2020 the UIF had around R160 billion in its coffers for Covid-19 temporary employee relief, of which it paid R61 billion in claims.

ALSO READ: Couple convicted for R10 million Covid-19 Ters fraud