SIU applauds arrests for fraud linked to TERS in E Cape

TERS, a relief mechanism funded by the Unemployment Insurance Fund (UIF), aimed to mitigate the financial distress caused by the pandemic.

The Special Investigating Unit (SIU) has praised the arrests of four individuals implicated in the fraudulent activities against the Temporary Employer/Employee Relief Scheme (TERS) in the Eastern Cape. Orchestrated by the Hawks, these arrests mark the commencement of legal actions against the accused for exploiting the system designed to aid employees and employers during the COVID-19 pandemic.

TERS, a relief mechanism funded by the Unemployment Insurance Fund (UIF), aimed to mitigate the financial distress caused by the pandemic. However, according to the SIU, the accused allegedly exploited this initiative by claiming benefits they were not entitled to, which was uncovered through diligent investigations by the SIU.

The accused individuals are Nomvuzo Melody Kupiso, Tlotliso Molaba, Lehlohonolo Class Motaung, and Lelokonyana Isak Letseng. It was reported that Kupiso, through her company Khayathi, fraudulently applied for TERS benefits by falsifying employee statuses and creating deceptive proofs of payment. These claims, made for individuals no longer employed since 2015, led to a fraudulent disbursement of R216,905.95 to Khayathi. Kupiso was arrested and later released on R1,500 bail after her court appearance on charges of fraud, forgery, and uttering.

Similarly, Molaba, Motaung, and Letseng are accused of submitting fraudulent TERS claims through their companies, Afrikhan Source (Pty) Ltd and Izuz Gibbor (Pty) Ltd, for employees who never worked for them. Between the two companies, the UIF disbursed substantial sums based on these claims. After the referrals from the SIU, these suspects were also arrested and granted bail, with court proceedings set to continue.

These arrests underscore the ongoing efforts by South African authorities to clamp down on corruption and fraud, particularly in government-sponsored financial aid programs. The SIU's commitment to investigating and addressing these crimes highlights the critical importance of maintaining integrity and accountability within such relief initiatives.