The UIF said the arrest of 16 suspects in one operation is the biggest witnessed thus far. File picture
THE UNEMPLOYMENT Insurance Fund (UIF) has welcomed the arrest of 16 people who allegedly swindled the Fund’s Covid-19 Temporary Employer-Employee Relief Scheme (Ters) of R2.2 million.
UIF spokesperson Trevor Hattingh said the suspects were apprehended in Gauteng and the North West respectively by the Hawks.
“During the height of the Covid-19 pandemic in 2020, three sole directors of different dormant entities applied for Covid-19 Ters funds from the UIF on behalf of respectively 47, 133, and 141 people, who were seemingly not employed by them,” Hattingh said.
“At least R2.2 million in Covid-19 Ters funds was subsequently paid into the companies’ bank accounts and the money was channelled to certain individuals for personal enrichment.”
Hattingh said that following extensive investigations the accused were traced and arrested on Sunday and charged with fraud.
Meanwhile, UIF Commissioner Teboho Maruping has commended the different law enforcement units involved in the latest round of arrests.
“The arrests of these 16 suspects in one operation is the biggest we have witnessed thus far, since the establishment of the Covid-19 Ters scheme. I hope this bold action sends a strong and clear message to would-be and other fraudsters that the long arm of the law will catch up with them,” Maruping said.
“Those who have helped themselves to the funds earmarked for workers during the lockdowns must not have any peace. They must know that the net is closing in on them. We will continue to work with all the law enforcement agencies including the Hawks, the Special Investigating Unit and the National Prosecuting Authority.”
Maruping said the UIF is conducting Phase 2 of the “Follow the Money” project, which entails auditing of companies to verify if their claims were valid and if the right amount of money was paid over to workers, at the right time.
“We have appointed several forensic audit firms with over 360 auditors that are currently visiting companies that have benefited from Covid-19 Ters funds and are suspected of fraud. Until all fraudulent funds are fully recovered and the suspects held accountable, we will not rest.
“In this regard, the UIF will continue to work with the Department of Employment and Labour’s Risk, Anti-Fraud and Integrity Management unit and law enforcement partners,” Maruping said.
In 2020, during the Covid-19 pandemic, the UIF was entrusted with the responsibility of alleviating poverty by providing short-term financial relief to businesses and workers for the South African economy to survive the devastating impact of the pandemic.
To date, the UIF said 10 people have been convicted and sentenced to direct imprisonment or suspended sentences for defrauding the Covid-19 Ters scheme.
Meanwhile, 46 suspects have been arrested thus far and the UIF said it anticipates more arrests.