Johannesburg - The Unemployment Insurance Fund (UIF) has welcomed the arrests of 16 suspects accused of swindling the Fund’s Covid-19 Temporary Employer-Employee Relief Scheme of R2.2 million.
Some of the suspects were arrested in Gauteng, while others were arrested in parts of the North West province by members of the SAPS and the Directorate for Priority Crime Investigation, the Hawks.
It is alleged that these suspects were at the centre of corrupt activities that took place at the height of the Covid-19 pandemic in 2020. The suspects are accused of swindling fund money meant for unemployed people.
According to media reports, three sole directors of different dormant entities applied for Covid-19 TERS funds from the UIF on behalf of 47, 133, and 141 people, respectively, who were seemingly not employed by them.
It is alleged that at least R2.2 million in Covid-19 TERS funds was subsequently paid into the companies' bank accounts, and the money was channelled to certain individuals for personal enrichment.
UIF Commissioner, Teboho Maruping, said following investigations in this regard, the suspects were traced and arrested on Sunday, November 27, 2022, and appeared in the Mahikeng Magistrates Court on Monday, November 28, 2022, on charges of fraud.
According to NPA spokesperson for the North West Henry Mamatome region, the case has been rolled over to today following a brief appearance on Monday.
"The case was rolled over to Tuesday for a bail application. An update will be issued following their appearance in court this morning," Mamatome said.
Ahead of the court appearance, Maruping welcomed the latest arrests and commended the Hawks and the Department of Employment and Labour’s Risk, Anti-Fraud, and Integrity Management Unit in the North West for their relentless hard work in bringing Covid-19 TERS fraud suspects to book.
"The arrests of these 16 suspects in one operation are the biggest we have witnessed thus far since the establishment of the Covid-19 TERS scheme."
"I hope this bold action sends a strong and clear message to would-be and other fraudsters that the long arm of the law will catch up with them. Those who have helped themselves to the funds earmarked for workers during the lockdowns must not have any peace."
"They must know that the net is closing in on them. We will continue to work with all the law enforcement agencies, including the HAWKS, the Special Investigating Unit, and the National Prosecuting Authority at the Fusion Centre in our relentless pursuit to bring all Covid-19 TERS fraudsters to book, and we will leave no stone unturned in this journey," Maruping said.
Maruping said more arrests in this regard are imminent.
The Star