UIF staff and business owners in Gauteng and KwaZulu-Natal are accused of defrauding the Ters scheme of over R160 million.
Officials and businesses that unduly profited from the Covid-19 chaos have been raided by the Special Investigating Unit (SIU).
Unemployment Insurance Fund (UIF) offices were raided by SIU officials on Thursday in connection with an investigation into the abuse of the Temporary Employer-Employee Relief Scheme (Ters).
UIF staff and business owners are accused of multiple offences related to the misappropriation of R161 million in Ters benefits.
The SIU’s raids were conducted at offices in multiple parts of Gauteng and KwaZulu-Natal (KZN).
Alleged Ters fraud
UIF officials working at the head office in Pretoria are alleged to have facilitated fraudulent applications, tampered with beneficiary profiles and bypassed audits.
The raids led to the confiscation of a large amount of documents, including Ters applications, bank statements and related correspondence.
Officials and staff at the implicated business had their devices, hard drives and work equipment confiscated.
“The SIU investigated Ters payments to individuals who were not entitled to receive them and submitted false, irregular, invalid, or defective applications to the UIF,” stated the SIU.
Evidence collected will be used in civil claims to recoup lost funds, with criminal acts being referred to the National Prosecuting Authority for prosecution.
KZN councillor implicated
Among the biggest illicit profiteers is a company with offices in Sunninghill, Rosettenville and Kenilworth, which is accused of fraudulently receiving R19.1 million.
Key persons of interest include the director of a KZN construction company that received R18 million, as well as a councillor from the Ray Nkonyeni Local Municipality.
“The SIU investigation reveals that payments were directed toward asset purchases for the alleged mastermind and other syndicate figures.”
The syndicate mastermind is believed to be the owner of a company with four offices across Gauteng and KZN and is alleged to have received R15.9 million.
Other suspects raided include two attorneys and several company directors accused of laundering the funds.
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