Hawks arrest trio over alleged R26.9m UIF TERS scam in Mpumalanga

Who was arrested and what they’re accused of

The arrests involve a 48-year-old Malawian-born permanent South African resident, his 48-year-old South African wife, and a 39-year-old South African-born brother-in-law. They face allegations of fraud and money laundering linked to claims submitted to the UIF during the Covid-19 relief period.

Allegations and the alleged scale of the fraud

Hawks spokesperson Lieutenant Colonel Magonseni Nkosi said the main suspect, a director of a construction company, allegedly benefited unduly from the Covid-19 TERS, with the UIF suffering an actual loss of R26 943 793.19. The company is accused of claiming benefits for more than 700 ghost employees.

How the funds were moved and used

A joint investigation by the Hawks’ Nelspruit-based Serious Corruption Investigation, the UIF, the Special Investigating Unit and the NPA Asset Forfeiture Unit found that the money was channelled into several bank accounts, including accounts linked to the company director, his wife and her company, and the brother-in-law, allegedly for personal enrichment.

Further investigations allegedly showed the funds were used to acquire various movable and immovable assets.

Role of the brother-in-law and recruitment claims

Investigators say the brother-in-law allegedly played a key role in recruiting people under false promises of employment. Some of the identity particulars used in the UIF claims are said to have belonged to former employees of the company.

Arrest and court appearance

The three suspects handed themselves over to the Hawks on 17 May and are expected to appear before the Middelburg Magistrate’s Court on 18 May.

Law enforcement response

Major General Nico Gerber, Provincial Head of the Hawks in Mpumalanga, commended the collaborative effort of the agencies involved and said the directorate remains committed to holding perpetrators to account and seizing the proceeds of crime.

Investigations continue

Authorities said investigations are ongoing.