Shortly after receiving R19m in employee relief funds, Nikluis Manuel purchased a truck in cash and transferred portions of the money into his personal accounts.
Seven months later, he bought a Hyundai H1 followed by another cash purchase of a Mercedes-Benz W205 and a trailer five months later in October 2023.
In the same month, he also transferred of R570,000 to his partner Khanyi Angel Nokukhanya to facilitate the purchase of an apartment in Turfontein, south of Joburg.
This was contained in a statement by the Special Investigating Unit (SIU), which has just obtained preservation orders from the Special Tribunal for Manuel’s personal assets and that of his company, Nako MangTrading Enterprise CC.
The Sunninghill-based company fraudulently claimed R19,1m for the Temporary Employer/Employee Relief Scheme (TERS) which Manuel made to the Unemployment Insurance Fund (UIF)
The SIU’s probe found that Manuel, the director of Nako Mang, received the funds in October 2022. He then quickly purchased vehicles and apartments, one of which was next to Nokukhanya house. He further sent various amounts to other directors and retained a portion of the funds as “commission”.
According to SIU spokesperson Selby Makgotho, the tribunal has interdicted the respondents from selling, transferring, or encumbering the identified assets.
He said the Registrar of Deeds has also been instructed to place restrictions on the title deeds and register caveats to prevent any disposal without the Tribunal’s approval.
“The SIU investigation revealed that Nako Mang Trading Enterprise fraudulently applied for UIF TERS benefits between 2020 and 2023 by misrepresenting employment relationships. Affidavits from the purported employees confirmed that they were never employed by the company.
“Instead of paying workers as required, the funds were diverted into the personal accounts of directors and their associates,” Makgotho explained.
He added that downstream beneficiaries included Nokukhanya.
“This pattern of layering and integration is consistent with money laundering, which seeks to disguise the unlawful origin of public funds through movable and immovable assets,” he said.
Makgotho said the SIU remains committed to holding accountable those who unlawfully benefit from public funds and ensuring that money intended for workers during the Covid-19 pandemic is recovered.
“The preservation orders ensure that these assets remain secure and are not dissipated before the finalisation of civil recovery proceedings. The SIU will seek to recover losses suffered by the UIF, which amount to more than R148.4m across multiple companies implicated in fraudulent TERS claims,” he said.
The SIU is also authorised to institute civil proceedings in the tribunal to correct any wrongdoing uncovered during its investigation and to recover financial losses suffered by the state, including funds paid for services not rendered.
Sowetan
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.