SIU raids KZN, Gauteng in R161m Covid-19 TERS fraud case

THE Special Investigating Unit (SIU), in collaboration with specialised police units, executed search warrants yesterday across KwaZulu-Natal and Gauteng as part of an investigation into a R161 million fraud syndicate linked to the Unemployment Insurance Fund's (UIF) Covid-19 Temporary Employee Relief Scheme (TERS).

- MERCURY CORRESPONDENT

SIU cracks down on R161m Covid-19 TERS fraud with raids across KZN and Gauteng.

(Supplied)

The operation, authorised by a warrant issued by the Special Tribunal, targets multiple locations, including business premises, private residences, and the UIF head office in Pretoria.

According to SIU spokesperson Kaizer Kganyago, the searches form part of an extensive investigation into fraudulent TERS applications submitted on behalf of individuals who were not employed by the companies in question. The scale of the operation highlights the gravity of the allegations, which implicate more than 35 individuals and 16 companies.

Among those identified is Thamsanga Madlala, director of Bokoharama Construction, who is considered a key figure in the investigation.

The SÍU alleges that a sophisticated syndicate orchestrated the submission of falsified claims, diverting funds intended for financially distressed workers to syndicate members. The conduct is said to demonstrate patterns consistent with money laundering.