SIU Freezes Assets of KZN Businesswoman in R18 Million UIF TERS Fraud Probe

The use of fictitious employee records to claim UIF TERS benefits constitutes a criminal offence under South African law.

The Special Investigating Unit (SIU) has secured a major victory in its ongoing crackdown on COVID-19 corruption after the Special Tribunal granted an order freezing the assets of a KwaZulu-Natal businesswoman allegedly linked to the unlawful diversion of more than R18 million from the Unemployment Insurance Fund's Temporary Employee Relief Scheme (UIF TERS).

The preservation order targets the assets of Yolanda Nombuso Mgobo, who allegedly benefited from funds flowing through multiple companies implicated in fraudulent UIF TERS claims submitted during the height of the COVID-19 pandemic.

The SIU announced that although Mgobo did not personally submit UIF TERS claims, investigations uncovered that her personal and business accounts received substantial payments linked to companies that had fraudulently accessed relief funds using what investigators described as a "ghost employee database".

The use of fictitious employee records to claim UIF TERS benefits constitutes a criminal offence under South African law.

More Than R18 Million Allegedly Funnelled Through Accounts

According to the SIU, investigations revealed that Mgobo received a total of approximately R18 632 335 through personal and business accounts connected to the broader scheme.

The SIU said the funds were allegedly used to benefit both Mgobo and her life partner, Hlalanathi Hopewell Mbangi, between 2020 and 2025.

"The SIU investigation uncovered that Mgobo received payments totalling R18 632 335 in both her personal and business accounts," the SIU said in a statement.

"The SIU's investigation further revealed that Mgobo utilised these proceeds for personal benefit and that of her life partner, Mr Hlalanathi Hopewell Mbangi, between 2020 and 2025."

Investigators believe the case forms part of a broader network of fraud and money laundering linked to the abuse of emergency relief measures introduced during the pandemic to support struggling workers and businesses.

Multiple Companies Linked to Alleged Fraud Scheme

The SIU identified several companies connected to the alleged unlawful claims, including:

• Ezogu Trading (Pty) Ltd

• Nakomang Trading Enterprise CC

• Ezikamshalaza Trading CC

• Senzisipho (Pty) Ltd

• Amakhosana Contractors (Pty) Ltd

According to investigators, these companies submitted irregular claims to the UIF TERS programme and subsequently transferred portions of the proceeds to Mgobo.

The SIU's financial investigation uncovered substantial transactions between the implicated entities and Mgobo over several years.

UIF Payments Received by Companies

The investigation revealed that:

• Nakomang Trading Enterprise received approximately R19.2 million from UIF between 2020 and 2023.

• Ezikamshalaza Trading received approximately R5.09 million.

• Ezogu Trading received approximately R8.73 million.

Investigators further traced a complex pattern of payments flowing from these entities into Mgobo's accounts.

Suspicious Transactions Uncovered

According to the SIU, between January and October 2022, Ezogu Trading transferred approximately R1.2 million to Mgobo.

In addition, Ezikamshalaza Trading allegedly made multiple payments to Mgobo between April 2022 and May 2023.

The SIU detailed the transaction flow:

"Between 6 April 2022 and 18 May 2023, further payments were made by Ezikamshalaza Trading to Mgobo as part of the broader flow of funds, with the last payment made on 23 May 2023 being R720 000. By 2023, Ezikamshalaza Trading had paid a total of R1 698 720 to Mgobo," the SIU said.

Financial crime experts say the tracing of inter-company payments and linked transactions forms a critical component of corruption and money laundering investigations, particularly where public funds are suspected to have been diverted through layered financial structures.

Properties and Vehicles Frozen

The Special Tribunal's preservation order has frozen several high-value assets allegedly acquired using proceeds linked to the UIF TERS scheme.

Assets Preserved Include:

Vehicles

• A Hyundai Tucson

• A Ford Ranger allegedly transferred from Mgobo to Mbangi

• A Toyota Corolla

Properties

• A property in Knightswood, Scottburgh, valued at approximately R870 000

• A property in Uvongo on KwaZulu-Natal's South Coast, valued at approximately R845 000

• Two additional Scottburgh properties, each valued at approximately R1 million

The preservation order prohibits Mgobo, Mbangi and Yoluleko Trading from selling, transferring, concealing or disposing of the listed assets while legal proceedings continue.

"This means that the assets must remain untouched until the Special Tribunal decides whether the agreement between the implicated parties and the department was unlawful," the SIU explained.

Owners Must Continue Paying Expenses

Although the assets have been frozen, the tribunal ruled that all associated costs must continue to be paid by the individuals involved.

This includes:

• Property levies

• Insurance premiums

• Vehicle licence fees

• Municipal charges

• Other maintenance-related expenses

"Although the assets are frozen, the individuals must continue to pay all associated costs related to the properties and vehicles, including levies, insurance, vehicle licensing, and any other related expenses," the SIU stated.

Criminal Prosecution Looms

The SIU confirmed that the matter will now be referred to the National Prosecuting Authority (NPA) for consideration of criminal prosecution.

The referral will include possible charges of:

• Fraud

• Money laundering

• Corruption-related offences

The SIU said criminal charges may be pursued against:

• Ezikamshalaza Trading

• Company directors and members

• Individuals involved in facilitating the scheme

• Additional entities linked to the unlawful activities

"The referral will cover charges of fraud and money laundering against Ezikamshalaza Trading, its members or directors, and all individuals or entities involved in enabling the unlawful activities," the SIU said.

Ongoing Crackdown on COVID-19 Corruption

The UIF TERS programme was introduced during the COVID-19 pandemic as an emergency intervention to provide temporary financial relief to workers and businesses affected by lockdown restrictions and economic disruption.

However, the programme became one of the largest targets for fraud and corruption during the pandemic, with billions of rand flagged for irregular claims, ghost employees and organised syndicates exploiting weaknesses in verification systems.

The SIU has since launched numerous investigations into the abuse of pandemic relief funding, recovering millions of rand and pursuing civil and criminal action against implicated individuals and entities.

Anti-corruption analysts say the latest preservation order demonstrates increasing sophistication in South Africa's efforts to trace and recover proceeds linked to financial crime and abuse of public funds.

SIU Vows to Recover Public Money

The SIU said it remains committed to recovering state funds lost through corruption and ensuring accountability for those who exploited emergency relief measures intended to protect vulnerable South Africans during the pandemic.

"The SIU remains committed to recovering public funds lost through corruption and maladministration, and to holding accountable those who sought to exploit relief measures intended to support vulnerable workers and businesses during the pandemic," the unit said.

The case is expected to proceed before the Special Tribunal while parallel criminal investigations continue.