SIU conducts raids in KZN, Gauteng regarding theft of R161m from UIF

The Special Investigating Unit (SIU) is carrying out raids in KwaZulu-Natal and Gauteng as part of its probe into the alleged theft of R161 million from the Unemployment Insurance Fund (UIF).

Raids were executed at the UIF’s Pretoria offices, along with several other locations, including office buildings and private residences.

The SIU said the money was allegedly siphoned from the UIF’s COVID-19 Temporary Employer/Employee Relief Scheme (TERS).

Among the suspects is Thamsanqa Madlala, an uMkhonto weSizwe (MK) Party councillor at the Ray Nkonyeni Local Municipality.

It’s alleged that Madlala purchased several taxis with the UIF money.
  
More than 35 companies and 16 individuals are suspected of playing a role in the fraudulent scheme that allegedly looted R161 million from the UIF.
 
It’s understood that a well-coordinated syndicate submitted false applications to the UIF in to access COVID-19 relief funds.
 
The SIU said the money was paid to the 16 companies that submitted the claims, but the funds never reached the workers.
 
Instead, the SIU said it has obtained evidence showing the money was redirected and shared among the individuals who ran the syndicate, in a manner consistent with money-laundering patterns.
 
The SIU added that during Thursday’s search-and-seizure operation, bank statements, computers, and cell phones were confiscated.