Durban - The Unemployment Insurance Fund (UIF) says it has recovered more than R900 million of Covid-19 temporary employer-employee relief scheme (Ters) funds that had been fraudulently claimed by companies.
It also said that at least 30 suspects had been arrested for Ters-related offences, and three departmental officials had been dismissed for fraud relating to the Ters payments.
As part of the breakthroughs made, nine suspects arrested for allegedly fraudulently claiming benefits of R2.4m from Ters appeared in the Durban Specialised Commercial Crimes Court yesterday. They were granted bail.
Hawks spokesperson Captain Simphiwe Mhlongo said that KwaZulu-Natal Hawks members tasked to investigate Covid-19 fraud cases arrested eight suspects for fraud, corruption and money laundering on Monday. A ninth suspect was arrested later that day.
“It is alleged that two of the arrested suspects are directors of companies that applied for Ters for their employees. They allegedly added a number of employees who were not working for their companies; as a result, the Department of Labour suffered a loss of more than R2.4m.”
Mhlongo added that the preliminary investigation revealed that one of the department’s employees had received cash from the suspect. She was also arrested. He said all the suspects were granted bail and the case was adjourned to October 18. The two directors were granted bail of R15 000 each and the seven others got bail of R5 000 each.
UIF commissioner Teboho Maruping welcomed the arrests, praising UIF risk management officials in KZN and the Hawks for their collaborations.
“We are much obliged for the outstanding work of our risk management officials and law enforcement agencies responsible for these arrests. The day is coming for everyone who illegally helped themselves to monies that were meant for workers during the lockdowns. They will not escape. Working with law-enforcement agencies, we will continue being hot on the heels of anyone suspected of defrauding the fund.”
He said he hoped the arrests would serve as a deterrent to those who contemplated stealing from the UIF.
“While the arrest of one of our officials is concerning, we have a zero-tolerance approach when it comes to bribery and corruption. Action will be taken against any official who participates in these shameful acts.”
“The fund anticipates more arrests as Phase 2 of the ‘follow the money’ project started this month.”
The project saw the UIF employ six audit companies to follow all Covid-19 Ters money to ensure that the correct amount was paid to the workers “at the right time”.
The six auditing companies are now being bolstered by a team from the fund that is visiting employers to conduct an internal verification of the declared employees.
“We are checking all the companies that were paid Covid-19 Ters, but at the moment we are focusing on those that have been the focus of the Auditor-General of South Africa. Once that is done, we will visit all the other companies that were paid by the UIF,” said Maruping.