- The Mpumalanga High Court has frozen more than R26 million in assets linked to alleged Covid-19 TERS fraud, targeting suspects accused of over 700 false UIF claims.
- Investigators found that none of the listed claimants was actual employees, with over R26 million paid out after misrepresented data was submitted during the pandemic.
- The Asset Forfeiture Unit has preserved vehicles, properties, and bank funds worth over R31 million, reinforcing that crime does not pay while the case continues.
The National Prosecuting Authority’s Asset Forfeiture Unit has secured a restraint order worth over R26 million against several suspects in Mpumalanga.
This order is part of an ongoing case linked to the alleged abuse of the Covid-19 Temporary Employer/Employee Relief Scheme (TERS), which was meant to help vulnerable workers during the national state of disaster.
The High Court granted the order under Section 26 of the Prevention of Organised Crime Act 121 of 1998. It freezes the assets in question, preventing them from being sold, transferred, or hidden while the criminal case continues.
Background to the alleged TERS fraud
According to Mpumalanga NPA spokesperson Monica Nyuswa, the investigation focuses on the actions of Company F and A Consulting CC between October 2020 and January 2021. During this time, the company allegedly misrepresented employee information to the Unemployment Insurance Fund to access emergency relief funds.
Nyuswa said investigators found that over 700 names were submitted to the TERS portal as if they were genuine employees entitled to pandemic aid. However, later verification showed that none of these people had ever worked for the company.
“The company submitted more than 700 names to the TERS portal. These individuals were presented as legitimate employees entitled to emergency pandemic relief, but it was later discovered that none of them had ever been employed by the firm,” Nyuswa said.
“These fraudulent claims resulted in a payout of over R26 million, creating a major financial shortfall for the UIF at a time when resources were desperately needed for people with real claims.”
This alleged fraud happened when thousands of workers across South Africa were facing job losses, pay cuts, and uncertainty. The UIF relief fund was created to support people in exactly these situations.
Asset forfeiture and accountability
The Asset Forfeiture Unit traced how the alleged proceeds of crime were used. The restraint order now covers assets valued at more than R31 million, including a fleet of vehicles, real estate, and funds held in several bank accounts linked to the suspects.
“The AFU is a key part of our strategy to make sure that crime does not pay,” Nyuswa said. “By taking away the proceeds of alleged crimes, we reinforce accountability.”
The restraint order is not a conviction. It is a way to make sure that if the state wins its case, there will be assets left to recover.
Nyuswa said the criminal investigations are ongoing. “By using the Prevention of Organised Crime Act, the state is showing that it will pursue financial consequences as strongly as criminal sentences, protecting the rule of law and the integrity of social safety nets.”
Get your news on the go. Clickhere to follow the Conviction WhatsApp channel.
