SIU Freezes R2.7 Million Property in UIF TERS Fraud Investigation

The SIU said the preservation order is aimed at safeguarding assets that may have been acquired using proceeds from allegedly fraudulent UIF TERS payments.

The Special Investigating Unit (SIU) has secured a preservation order freezing a property worth approximately R2.7 million in KwaZulu-Natal as part of ongoing efforts to recover public funds allegedly obtained through fraudulent claims under the Unemployment Insurance Fund's Temporary Employer/Employee Relief Scheme (UIF TERS).

The order was granted by the Special Tribunal following an application by the SIU. The property is linked to Ziqoqe Construction CC and forms part of a broader investigation into suspected abuse of COVID-19 relief funds that were intended to support businesses and workers during the pandemic. The SIU said the preservation order is aimed at safeguarding assets that may have been acquired using proceeds from allegedly fraudulent UIF TERS payments.

Investigation Uncovers Alleged Ghost Employees and Unpaid Workers

According to investigators, Ziqoqe Construction owner Ndabezinhle Luthuli submitted UIF TERS applications on behalf of employees during the COVID-19 lockdown periods between March and August 2020. The UIF subsequently paid a total of R9.84 million in TERS benefits to the company between July 2020 and September 2024.

The SIU's investigation found that the funds were allegedly not distributed to the 673 employees listed in the applications. Investigators also discovered that no repayments were made to the UIF for unutilised funds. Further inquiries raised serious concerns about the legitimacy of the employee records submitted. The SIU reported that some individuals listed as workers were found to be ghost employees, while several people contacted during the investigation denied ever having worked for the company.

These findings led investigators to suspect that a significant portion of the UIF payments may have been obtained through misrepresentation.

Property Linked to Alleged Fraud Cannot Be Sold or Transferred

The SIU believes that the KwaZulu-Natal property was purchased in November 2023 using funds derived from the alleged fraudulent scheme. Investigators contend that the acquisition benefited Luthuli through proceeds linked to unlawful activities.

As part of the investigation, the SIU carried out search-and-seizure operations in December 2025 involving associated individuals and entities.

The Special Tribunal has now directed the Deeds Registry to place restrictions on the property, preventing it from being sold, transferred or used as security without either a court order, a Tribunal order or written agreement between the parties involved.

The Tribunal further ruled that Luthuli and Ziqoqe Construction remain responsible for all ongoing costs associated with the property, including insurance, levies and other financial obligations, while the legal process continues. The issue of legal costs will be determined at a later stage.

The SIU said the preservation order forms part of its broader mandate to recover public money lost through corruption, fraud and maladministration. The unit reiterated its commitment to holding accountable those who exploited emergency relief programmes introduced to assist businesses and workers during one of the most challenging periods of the COVID-19 pandemic.