A businessman is set to lose seven properties and four cars to the state after allegedly claiming more than R16m in Covid-19 employee relief funds.
Nhlakanipho Mngomezulu is believed to be part of a syndicate, alongside Nikluis Manuel, that allegedly syphoned about R161m from the Unemployment Insurance Fund (UIF) through the Temporary Employer/Employee Relief Scheme (Ters).
These funds were provided by the state and were meant to cushion workers during Covid, as many businesses’ operations were limited due to lockdown. In this alleged fraud scheme, the funds never reached the intended workers, and, in some cases, the workers were non-existent.
Massive search and seizure operations linked to the investigation were conducted at different properties in Gauteng and KwaZulu-Natal in December last year.
The Special Investigating Unit (SIU) has since obtained a preservation order from the Special Tribunal, freezing Mngomezulu’s two Capitec Bank accounts, including taking over his movable and immovable property.
Mngomezulu, a director of SA Scrum Assembly, is accused of unlawfully receiving more than R16.3m from the UIF through the Ters. According to SIU spokesperson Selby Makgotho, the company received more than 40 payments between 2020 and 2022 – but there is no evidence that any salaries were paid to workers.
“Analysis of bank records confirmed that SA Scrum Assembly received 45 payments from the UIF, with no evidence that employee salaries were paid. Funds were instead channelled through other accounts in a pattern that appears to be a money-laundering scheme,” said Makgotho.
He added that Mngomezulu personally benefited from the scheme, receiving more than R5m in multiple payments.
Makgotho also alluded that soon after the payouts, between March 2020 and October 2021, Mngomezulu began spending.
He bought several vehicles in cash, including:
- a Volkswagen Caravelle;
- Kia K2700;
- Toyota Avanza; and
- Ford Ranger.
At the same time, he and his company acquired a string of properties in KwaZulu-Natal. “These include two properties in Glyndale, four apartments in Pietermaritzburg, and another property in Zeekoe Vallei in eThekwini, all of which are now subject to the preservation order,” he said.
The tribunal granted an interim order prohibiting Mngomezulu from selling or earning income from the properties.
“The president of the tribunal, judge Margaret Victor, granted an interim order prohibiting Mngomezulu from selling, disposing of, transferring, leasing, or otherwise dealing with the identified assets pending the finalisation of the matter.”
Suspect companies and directors:
- Nakomang Trading Enterprise (Gauteng): Received R19.1m;
- Lubelo Hlomuka Holdings, trading as SA Scrum Assembly (KZN/Gauteng) received R15.9m. Its director, Mngomezulu, is identified by the SIU as the syndicate’s alleged mastermind (“Mkhulu”);
- Bokoharama Construction (KZN) received R18.1m. Its director, Thamsanqa Madlala, is a key person of interest and a local councillor at the Ray Nkonyeni Municipality;
- Other major companies searched include Aventador Gate in Pretoria, which received R3.8m, and several based in KwaZulu-Natal.
Key persons of interest
- Thamsanqa Madlala: As a primary person of interest, Madlala’s company received R18m in Ters funds. The SIU investigation reveals that payments were directed toward asset purchases for the alleged mastermind and other syndicate figures.
- Yolanda Nombuso Mgobo was identified as a central figure who received and distributed more than R18.6m in funds;
- Sphamandla Sokhela and Nhlakanipho Zondi (attorney) are alleged proxies for Mngomezulu;
- Senzo Gumede, the director of companies (Amakhosana Contractors and Senzisipho Pty Ltd), allegedly used to launder funds, with searches in Durban and Pietermaritzburg.
- Sboniso Ronald Cele and Simtholile Dlamini are alleged “runners”.
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.