Amanzimtoti home among those raided for Covid-19 UIF fraud
During the Covid-19 pandemic, the syndicate allegedly submitted false applications to the UIF on behalf of individuals who were not employees of the applicant companies.
THE Special Investigating Unit (SIU) conducted a co-ordinated search and seizure operation in Amanzimtoti, Scottburgh, Port Shepstone, Pietermaritzburg, Durban, and Pretoria on December 11, as part of its ongoing investigation into a syndicate that allegedly stole around R161m from the Unemployment Insurance Fund’s (UIF) Covid-19 Temporary Employer/Employee Relief Scheme (TERS).
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Specialised police units, including the National Intervention Unit, the Hawks, and the Tactical Response Team, supported the operation.
SIU spokesperson Kaiser Kganyago said during the Covid-19 pandemic, the syndicate submitted false TERS applications to the UIF on behalf of individuals who were not employees of the applicant companies. The substantial funds received, said Kganyago, were not paid to workers; instead, they were distributed among syndicate members in patterns consistent with money laundering.
A total of 16 companies and about 35 individuals are suspected of being part of the fraudulent scheme, including a 31-year-old woman who owns homes in Amanzimtoti and Scottburgh, and her boyfriend. When the operation unfolded, she was found at her Scottburgh home.
The woman, whose name is known to the South Coast SUN, was identified as a central figure who received and distributed over R18.6m of the funds.
Kganyago said during the raids, the police and the SIU searched for crucial evidence, including bank statements, fraudulent TERS applications, correspondence with the UIF, computers, data storage devices, cellphones, and network equipment belonging to or used by the targeted companies and individuals.
“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,” he said.
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