SIU Welcomes Major Breakthroughs in Crackdown on COVID-19 TERS Fraud

“These ghost employees were used to channel public funds into private hands, depriving genuine workers of relief during the COVID-19 pandemic,” the SIU stated.

The Special Investigating Unit (SIU) has welcomed a series of significant breakthroughs in the ongoing fight against fraud linked to the COVID-19 Temporary Employer/Employee Relief Scheme (TERS), including arrests, convictions and asset preservation orders worth more than:

R27 million

According to the SIU, the latest developments represent substantial progress in recovering and preserving public funds that were unlawfully siphoned from the Unemployment Insurance Fund (UIF) during the COVID-19 pandemic.

"Together, these outcomes represent more than R27 million in UIF [TERS] funds that were siphoned from the state and are now preserved or recovered for the benefit of South Africans," the SIU said in a statement.

Mpumalanga Fraud Case Involves Ghost Employees

One of the major developments occurred in Mpumalanga, where three individuals appeared before the:

Middelburg Magistrate's Court

on charges linked to alleged fraud involving ghost employees under the UIF-TERS scheme.

The accused are:

• Fumu Mkalira Msiska

• Gladness Mkhonto Msiska

• Bongani Zoran Mkhonto

According to investigators, the suspects allegedly created fictitious employees and submitted fraudulent TERS claims to unlawfully access relief funds intended for workers affected by the pandemic.

"These ghost employees were used to channel public funds into private hands, depriving genuine workers of relief during the COVID-19 pandemic," the SIU stated.

Fraudulent Funds Allegedly Redirected Through Family-Linked Company

The SIU revealed that the funds were allegedly transferred from:

A and F Consulting

to another company linked to Msiska's wife:

Khulani Quality Contribution

Investigators allege that Bongani Zoran Mkhonto acted as a "runner" who sourced identification details used to facilitate the fraudulent claims.

The SIU said some of the personal information used in the scam was obtained through deceptive schemes targeting unsuspecting individuals.

Victims Allegedly Misled Through Fake Grant and Licence Offers

According to the SIU and the Hawks, some individuals whose identities were used in the fraudulent applications came from North West and Mpumalanga provinces.

Investigators found that victims were allegedly tricked through scams promising:

• Special grants

• Free driving licences

The SIU also stated that some personal details may have been stolen from:

A local Sheriff's office

and later used to process fraudulent TERS applications.

Court Grants Bail to Accused

The court granted bail to the accused as follows:

• Fumu Mkalira Msiska and Gladness Mkhonto Msiska were each granted bail of:

R300,000

• Bongani Zoran Mkhonto was granted bail of:

R3,000

High Court Freezes Properties and Luxury Assets

In a major development, the:

High Court of South Africa, Mpumalanga Division

issued a preservation order against assets believed to be proceeds of crime.

Assets preserved include:

Properties

• A property in Pretoria

• A property in Middelburg

• A property in White River

Vehicles

• 2019 Land Rover Range Rover L560

• 2011 Toyota Fortuner

• 2005 Mercedes-Benz C180 Kompressor

• 2015 BMW X6

• 2019 Mercedes-Benz V250 D

• 2010 Caterpillar backhoe loader

Additional Assets

• Household goods

• Office equipment

• Bank accounts

The SIU said the preservation order ensures that unlawfully acquired assets remain protected pending possible forfeiture proceedings.

Free State Man Convicted for UIF Fraud and Money Laundering

In another major breakthrough, the:

Heilbron Magistrates' Court

convicted:

Ente Thibello Sekhoto (51)

and his company:

Batlokoa Circle 12 Plaster Services

on charges of:

• Fraud

• Money laundering

The SIU investigation found that Sekhoto fraudulently applied for TERS relief funds on behalf of individuals who were not employees of his company.

As a result, the Unemployment Insurance Fund allegedly paid:

R201,812.36

into the company's bank account.

"The Department of Employment and Labour suffered direct financial loss," the SIU stated.

SIU Highlights Importance of Accountability and Recovery

The corruption-fighting unit said the arrests, convictions and preservation orders demonstrate the effectiveness of coordinated investigations aimed at ensuring accountability and recovering stolen public money.

"The SIU continues to work closely with law enforcement partners, including the Hawks and the National Prosecuting Authority, to ensure that perpetrators of corruption face the full might of the law," the unit stated.

Officials said these developments reaffirm the commitment of law enforcement agencies to:

• Protecting public funds

• Combating corruption

• Restoring public trust in institutions

SIU Working Closely With Hawks and NPA

The SIU confirmed ongoing collaboration with:

• Directorate for Priority Crime Investigation (Hawks)

• National Prosecuting Authority (NPA)

to pursue criminal prosecutions and asset recovery linked to TERS fraud.

The unit also reiterated its authority to institute civil proceedings in:

• The High Court

• The Special Tribunal

to recover losses suffered by the state.

Massive COVID-19 Relief Fraud Remains Under Investigation

Since the COVID-19 pandemic, South African authorities have been investigating widespread allegations of fraud involving the:

Temporary Employer/Employee Relief Scheme (TERS)

The scheme was originally designed to provide emergency financial relief to workers and businesses impacted by lockdown restrictions during the pandemic.

However, authorities uncovered extensive abuse involving:

• Ghost employees

• Fake companies

• Identity theft

• Fraudulent grant claims

• Organised criminal syndicates

Government Intensifies Efforts Against Public Sector Corruption

The latest SIU actions form part of broader government efforts to strengthen anti-corruption enforcement and recover stolen public funds.

Officials have increasingly focused on:

• Asset preservation

• Financial investigations

• Lifestyle audits

• Prosecution of economic crimes

Experts say recovering stolen COVID-19 relief funds remains critical to rebuilding public confidence in state institutions and ensuring accountability for pandemic-related corruption.

SIU Reaffirms Commitment to Recovering Public Funds

The SIU stated that investigations into TERS fraud and related corruption cases remain ongoing.

Authorities warned that individuals involved in the abuse of public relief schemes would continue to face:

• Criminal prosecution

• Asset seizures

• Civil recovery proceedings

The unit stressed that protecting public resources remains essential to ensuring that government support reaches the vulnerable citizens it was intended to assist.