SIU Welcomes Arrests, Convictions, and Preservation of R27 Million in Siphoned UIF-TERS Funds
BY : CHANON LECODEY MERRICKS ONLINE EDITOR KASiBC_AFRiCA
MIDDELBURG — South Africa’s corruption watchdogs have secured a massive victory against pandemic-era looters, successfully freezing luxury assets and locking down over R27 million in stolen COVID-19 relief funds across two provinces.
The Special Investigating Unit (SIU), working alongside the Hawks and the National Prosecuting Authority (NPA), announced major breakthroughs in Mpumalanga and the Free State. The multi-agency operation targeted syndicates and businesses that used identity theft and "ghost employees" to siphon money from the Unemployment Insurance Fund’s Temporary Employer/Employee Relief Scheme (UIF-TERS).
The Mpumalanga Syndicate: R26.9 Million Extracted via Ghost Workers
In the most severe case, three suspects appeared before the Middelburg Magistrate’s Court on Monday, 18 May 2026, facing heavy charges of fraud and money laundering.
Fumu Mkalira Msiska (48), his wife, Gladness Mkhonto Msiska (48), and his brother-in-law, Bongani Zoran Mkhonto (39), allegedly ran an aggressive, six-month identity fraud scheme in 2020. The SIU revealed that the trio fabricated hundreds of fake employees every month to redirect millions into private bank accounts.
The scale of the alleged monthly ghost employee claims grew steadily throughout the pandemic:
April 2020: 724 ghost employees
May 2020: 587 ghost employees
June 2020: 743 ghost employees
July 2020: 763 ghost employees
August 2020: 767 ghost employees
September 2020: 773 ghost employees
Investigators found that the funds were channeled from an entity called A and F Consulting into Khulani Quality Contribution, a company tied directly to Msiska’s wife. The brother-in-law, Mkhonto, allegedly served as the syndicate's "runner," harvesting ID numbers from unsuspecting victims in Mpumalanga and the North West under the guise of free driving license applications or special grants. Some personal records were even stolen directly from a local Sheriff’s Office.
The court granted bail of R300,000 each to Mr. and Mrs. Msiska, while their co-accused runner, Mkhonto, was granted bail of R3,000.
Fleet of Luxury Vehicles and Real Estate Frozen
The High Court of South Africa, Mpumalanga Division, issued sweeping preservation orders to strip the suspects of their allegedly ill-gotten wealth. The Asset Forfeiture Unit (AFU) immediately seized bank accounts, household equipment, and real estate holdings in Pretoria, Middelburg, and White River.
The state also confiscated an extensive fleet of vehicles, including:
2019 Land Rover Range Rover L560
2015 BMW X6
2019 Mercedes-Benz V250D
2011 Toyota Fortuner
2005 Mercedes-Benz C180 Kompressor
2010 Caterpillar backhoe loader
Free State Businessman Sentenced to Repay Stolen Funds
Simultaneously, the Heilbron Magistrates’ Court in the Free State handed down a decisive conviction against Ente Thibello Sekhoto (51) and his firm, Batlokoa Circle 12 Plaster Services (Pty) Ltd.
An SIU forensic audit discovered that Sekhoto fraudulently claimed R201,812.36 in relief benefits for individuals who never worked for his plastering business. Sekhoto was found guilty of fraud and money laundering and has been ordered by the court to jointly repay the Department of Employment and Labour every cent of the stolen money within the next four years.
The Human Toll of ID Theft: The real-world impact of this corruption came to light when a KwaZulu-Natal mother tried to claim her rightful maternity benefits. Her application was blocked because a company named Consulting Engineers had already used her stolen details to claim fraudulent COVID-19 TERS benefits without her knowledge, sparking the wider Hawks probe.
The SIU emphasized that under Proclamation R08 of 2021, it maintains the absolute authority to launch civil proceedings in the High Court or Special Tribunals to reverse financial damage inflicted on state organs. Law enforcement agencies reiterated that they will continue to track down and claw back public funds intended for vulnerable South African workers.
NEWS , AUDIO , VIDEO , EVENTS , TOURS , STORES
VISIT WWW.KASIBC.BLOGSPOT.COM
YOUR ADVERTS
Promote your Business KASIBC_AFRICA REACH MILLIONS of viewers DAILY!
Advertise With #KasiPeople
No comments:
Post a Comment
KASIPEOPLE