SIU intensifies crackdown on those that unlawfully benefited from public funds

The Special Investigating Unit (SIU) has said it’s intensifying efforts to hold those who unlawfully benefit from public funds accountable.

This after it secured an order from the special tribunal authorising the SIU to freeze assets belonging to Nhlakanipho Mngomezulu, director of SA Scrum Assembly.

The Gauteng-based training company received more than R16.3 million from the Unemployment Insurance Fund (UIF) in what the SIU describes as a sophisticated fraud scheme.

The funds were paid through the UIF's temporary employer/employee relief scheme, set up to support workers during the COVID-19 lockdown.

SIU spokesperson Selby Makgotho said investigations found the company submitted fraudulent claims.

"The SIU's investigation found that the funds were misappropriated through the use of ghost employees and diverted from their intended purpose of supporting workers affected by the covid19 lockdown. 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 channeled through other accounts in a pattern that appears to be a money-laundering scheme," said Makgothi.

Makgotho said Mngomezulu also personally benefited R5 million from the funds.

"Between 2020 and 2022, shortly after receiving the funds, he went on a shopping spree, purchasing vehicles in cash. In addition, he and his company acquired four immovable properties, primarily in Pietermaritzburg, KwaZulu-Natal, using the misappropriated funds," said Makgotho.