The Special Investigating Unit (SIU) has swooped in on properties across KwaZulu-Natal and Gauteng in a search-and-seizure operation targeting a syndicate accused of syphoning R161m from the Unemployment Insurance Fund’s (UIF) Covid-19 Temporary Employer/Employee Relief Scheme (TERS).
SIU spokesperson Kaizer Kganyago said the operation was authorised by a warrant issued by the Special Tribunal and extended to offices, private homes and the UIF head office in Pretoria.
The substantial funds received were not paid to workers; instead, they were distributed among syndicate members in patterns consistent with money laundering.
— Kaizer Kganyago, SIU spokesperson
“It is linked to 16 companies and over 35 individuals suspected of being central to the fraudulent scheme, including Thamsanqa Madlala, a key person of interest and director of Bokoharama Construction,” he said.
According to the SIU, the investigation points to a well-organised network that submitted false TERS applications on behalf of people who were never employed by the beneficiary companies.
“The substantial funds received were not paid to workers; instead, they were distributed among syndicate members in patterns consistent with money laundering,” Kganyago said.
Officers seized bank statements, fraudulent applications, memoranda of understanding with the UIF, correspondence and a wide range of digital devices, including desktops, laptops, cellphones, data storage devices and network equipment.
Kganyago said the operation focused on three main clusters across the two provinces, which are Nakomang Trading Enterprise in Gauteng, which received R19.18m.
Searches were conducted at its Sunninghill offices and linked residences in Rosettenville and Kenilworth, south of Johannesburg.
The unit is also focusing on Lubelo Hlomuka Holdings, trading as SA Scrum Assembly (KZN/Gauteng), which received R15.92m.
“Its director, Nhlakanipho Mngomezulu, is identified by the SIU as the syndicate’s alleged mastermind.”
Raids took place in Pietermaritzburg, Durban (Kenville), Sandton and Fourways.
Bokoharama Construction in KZN, which received R18m, was also raided.
Kganyago said its director, Thamsanqa Madlala – an MK Party councillor at Ray Nkonyeni Municipality who was elected in September – is a key person of interest.
He said searches were also conducted in Port Shepstone, Anerley and Margate.
Kganyago said other major companies were also targeted, including Aventador Gate in Pretoria, which received R3.8m, along with several KwaZulu-Natal-based entities.
He said investigators found that much of the money was funnelled into asset purchases for the alleged mastermind and syndicate members.
Among those flagged are:
• Yolanda Nombuso Mgobo – identified as a central figure who allegedly received and distributed more than R18.6m. Searches were carried out at her homes in Scottburgh and Amanzimtoti and at premises linked to her fiancé.
• Sphamandla Sokhela and attorney Nhlakanipho Zondi – alleged proxies for Mngomezulu. Their properties in Pietermaritzburg and Edendale were searched.
• Senzo Gumede – director of Amakhosana Contractors and Senzisipho Pty Ltd, allegedly used to launder funds. His Durban and Pietermaritzburg addresses were raided.
• Sboniso Ronald Cele and Simtholile Dlamini – alleged “runners”. Searches focused on Port Shepstone and Johannesburg (Oakdene).
The SIU also raided the UIF head office, where several officials have been flagged for possible involvement in enabling the fraudulent claims.
Kganyago said investigators are probing whether officials facilitated applications, bypassed audits or removed “victim” profiles from the system.
“The SIU investigated TERS payments to individuals who were not entitled to receive them and submitted false, irregular, invalid, or defective applications to the UIF, including the causes of such maladministration.”
He said seized material will now undergo forensic analysis as the SIU prepares for civil action to recover losses.
“The seized evidence will undergo forensic analysis to support the investigation, and the SIU will pursue civil action to correct any wrongdoing identified and recover financial losses suffered by the state,” Kganyago said.
Sowetan
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