South Africa’s (SA) Special Investigating Unit (SIU) has secured a court order to freeze assets worth about $981 000 linked to an alleged Unemployment Insurance Fund (UIF) fraud scheme.
The order follows an investigation into Lubelo Hlomuka Holdings, trading as SA Scrum Assembly, whose Director Nhlakanipho Mngomezulu is accused of unlawfully receiving funds from the Temporary Employer/Employee Relief Scheme (TERS).
TERS was introduced during the Covid-19 pandemic to help employers pay workers affected by lockdown restrictions.
According to SIU Spokesperson Selby Makgotho, the investigation found that the funds were diverted using so-called ghost employees and moved through multiple accounts in what appears to be a money-laundering operation.
The SIU says Mngomezulu personally benefited from the scheme, receiving more than five million rand in payments meant to support workers during the pandemic.
–ChannelAfrica–
