SIU freezes R19m in assets linked to COVID-19 TERS fraud

Six years after the government introduced the Temporary Employer-Employee Relief Scheme (TERS ) during the Covid-19 pandemic, the Special Investigating Unit (SIU) is still clawing back money from fraudulent claims.

In its latest attempt to seize ill-gotten gains, it has obtained a preservation order from the Special Tribunal to freeze assets worth R19-million from a couple behind a Johannesburg home maintenance company called Nako Mang Trading Enterprise.

The SIU said its investigation revealed that the company fraudulently applied for TERS benefits between 2020 and 2023 by misrepresenting employment relationships.

Affidavits from the alleged employees confirmed they were never employed by the company.

Instead, the funds intended for workers were diverted into the personal accounts of directors and associates.

The SIU’s probe revealed that Nikluis Manuel, the director, purchased vehicles in cash immediately after the UIF payments were made and kept some of the money as “commission”.

His wife received more than half a million rand from the UIF disbursements and later used it towards property acquisition.

SIU spokesperson Selby Makgotho explains.

"This pattern of layering and integration is consistent with money laundering, which disguises the unlawful origin of public funds through movable and immovable assets."

Among the assets that have been seized are two residential properties in Turffontein in Gauteng, an agricultural holding, three large vehicles, and a trailer.

The SIU says it will seek to recover losses suffered by the UIF, which amount to more than R148 million across multiple companies, implicated in fraudulent TERS claims.