Special Tribunal interdicts assets of training company director over alleged COVID-19 relief fraud

The Special Investigating Unit (SIU) has secured a Special Tribunal order as it steps up efforts to recover money unlawfully claimed from the Temporary Employer/Employee Relief Scheme (TERS). The order allows the unit to freeze assets belonging to the director of SA Scrum Assembly, Nhlakanipho Mngomezulu.

The Gauteng-based training company received more than R16.3 million from the Unemployment Insurance Fund (UIF) through what the SIU describes as a sophisticated fraud scheme. SIU investigators state the funds were claimed using ghost employees and were never paid to workers affected by the COVID-19 lockdown.

Bank records reveal a total of 45 payments from the UIF, with no evidence of subsequent salary payments to staff. Instead, the money was moved through multiple accounts, raising significant concerns regarding money laundering.

According to the SIU, Nhlakanipho Mngomezulu used the funds to purchase vehicles in cash and acquire several properties, primarily located in Pietermaritzburg. He allegedly received more than R5 million personally from the scheme.

The interim order freezes multiple properties, apartments, vehicles, and bank accounts linked to Mngomezulu and his company, pending the case's finalisation.

The SIU maintains that it will continue to hold those who unlawfully benefit from public funds accountable. The unit remains focused on ensuring that monies intended for workers during the COVID-19 pandemic are fully recovered.