SIU’s sweeping investigation targets R161m UIF fraud linked to Covid-19 TERS claims

THE Special Investigating Unit (SIU) has launched a search and seizure operation across KwaZulu-Natal and Gauteng, targeting a syndicate allegedly responsible for defrauding the Unemployment Insurance Fund (UIF) of more than R161 million through fraudulent Covid19 Temporary Employer/Employee Relief Scheme (TERS) claims.

- HOPE NTANZI

The operation, which is backed by various specialised units of the South African Police Service (SAPS), including the National Intervention Unit (NIU), the Directorate for Priority Crime Investigation (DPCI), also known as the Hawks, and the Tactical Response Team (TRT), is being executed at multiple locations across the two provinces.

According to SIU spokesperson Kaizer Kganyago, the investigation has uncovered evidence suggesting that a well-organised syndicate orchestrated the submission of false TERS applications on behalf of individuals who were not employees of the applicant companies.

"The substantial funds that were received were not paid to workers, but rather, were distributed among syndicate members in patterns consistent with money laundering," Kganyago said.

The SIU's search and seizure operation targets several premises, including offices, residences, and the UIF Head Office in Pretoria.

The operation is linked to 16 companies and over 35 individuals suspected of being central to the fraudulent scheme.