Mapaballo Borotho
- A major SIU-led raid targeted UIF offices and private homes in Gauteng and KwaZulu-Natal as part of an alleged R161 million Covid-19 TERS fraud investigation.
- Authorities believe a sophisticated syndicate submitted false applications and laundered the stolen funds through various individuals and companies.
- Several key suspects have been identified as investigators seize evidence and widen the probe
The Special Investigating Unit (SIU) on Friday conducted raids at several Unemployment Insurance Fund (UIF) offices in Gauteng and KwaZulu-Natal as part of a major probe into an alleged R161 million Covid-19 fraud scheme.
The suspected syndicate is believed to have siphoned millions from the UIF’s Covid-19 Temporary Employer/Employee Relief Scheme (TERS).
During the raid at the UIF’s Pretoria offices, the SIU was supported by members from the South African Police Service, including members of the Intervention Unit, Hawks, and Tactical Response Team.
The operation extended to multiple sites, private homes, regional offices, and the UIF head office in Tshwane, all suspected to be linked to an organised network accused of submitting false TERS applications for individuals who were never employed by the companies involved.
According to SIU spokesperson Kaizer Kganyago, investigators have begun visiting the homes of alleged beneficiaries as part of a widening probe into what they describe as a coordinated and well-organised fraud operation.
“The SIU investigation has uncovered evidence suggesting a well-organised syndicate orchestrated the submission of false TERS applications. The substantial funds received were not paid to workers; instead, they were distributed among syndicate members in patterns consistent with money laundering,” Kganyago said.
SIU teams are searching for crucial evidence, including documents and digital data. All seized material will undergo forensic analysis, and the SIU plans to pursue civil action to recover losses suffered by the state.
Key persons of interest include:
- Thamsanqa Madlala: A primary suspect whose company received R18 million in TERS funds. Investigators believe the money was used to purchase assets for the alleged mastermind and other syndicate members
- Yolanda Nombuso Mgobo: Seen as a central figure who received and distributed more than R18.6 million. Raids have taken place at her homes in Scottburgh and Amanzimtoti, as well as properties linked to her fiancé.
- Sphamandla Sokhela and Nhlakanipho Zondi (Attorney): Alleged proxies for another key suspect, with searches conducted in Pietermaritzburg and Edendale.
- Senzo Gumede: Director of companies allegedly used to launder funds, with raids in Durban and Pietermaritzburg.
- Sboniso Ronald Cele and Simtholile Dlamini: Alleged “runners”, with searches conducted in Port Shepstone and Johannesburg (Oakdene).
The SIU says Friday’s raids mark only the beginning of a broader effort to dismantle the syndicate and recover stolen public funds.
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