More UIF Covid Ters sentences will follow couple’s R10-million fraud case
A couple that defrauded the unemployment insurance fund of over R10-million, after having applied for 553 workers when they only had 22 employees, is set to be sentenced in May at Pretoria Specialised Commercial Crimes Court.
Those behind the misuse of millions of the unemployment insurance fund (UIF) Covid-19 funds – meant for workers – will face the full might of the law.
These were the sentiments of the labour department unemployment insurance fund (UIF) as a couple accused of R10-million fraud of Covid-19 temporary employer-employee relief scheme (Ters) pleaded guilty at the Pretoria Specialised Commercial Crimes Court, recently.
According to department spokesperson Makhosonke Buthelezi, the couple Moroko Moremi (37) and his wife Treasure (34), who are directors of Denmeng Trading, applied for Covid-19 Ters for 553 workers when they only employed 22.
The couple stands to be sentenced on May 17 by the Pretoria court.
Buthelezi said the department was confident that more suspects accused of the same crimes would follow. He said in 2020 the UIF embarked on a “follow the money” project and close to R900-million was recovered.
“The project is expected to resume in April 2022 upon the appointment of audit firms. It is anticipated that additional recoveries will be made, and more arrests will take place as fraudulent claims are uncovered,” Buthelezi said.
Pretoria became a hotspot for Covid-19 UIF-related crimes since the outbreak.
According to a Corruption Watch released last year, Pretoria was one of the areas with the highest cases of fraud and wrongdoing regarding Covid-19 Ters corruption.
One case that shocked many was that of Tshepang Phohole, who allegedly stole R5.6-million meant for employees of CSG Resourcing, a company based in the east of Pretoria.
Phohole and four other accused were arrested in July 2020 and were the first to be nabbed of Covid UIF-related fraud.
Another case, was that of 62-year-old Hammanskraal pensioner, Moreroa Moses Leso, who was arrested for laundering R4.7-million meant for the Mega Coach bus company. He was arrested in September 2021.
Buthelezi said the sentencing of the two cases were not yet finalised at the courts.
Commissioner Teboho Maruping said the cases set for sentencing at the court should be a warning that those who attempt or defraud the UIF will be arrested and punished for their heinous actions.
“I hope the latest conviction and arrests send a strong message to other would-be fraudsters that the long arm of the law will always catch up with you,” Maruping said.
“Those who have helped themselves to funds earmarked for workers during the lockdown should always remember that the law is creeping towards them and they will not have any peace.
“We will not tolerate the siphoning of workers’ benefits by unscrupulous individuals. All fraudsters are on notice and we hope more suspects are arrested and sent straight to jail.”
Maruping said the department would continue working with law enforcement agencies on suspected fraud.
“We also thank the public for being vigilant about the abuse of Covid-19 Ters funds by blowing the whistle,” Maruping said.
According to the department there has been four convictions of individuals who have defrauded the UIF of Covid-19 Ters funds, and more are expected as 15 cases have been referred to the SIU for further investigation.
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