Department of Employment and Labour welcomes the arrest of three suspects in a R27 million TERS fraud investigation led by the Hawks.
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The Department of Employment and Labour has hailed the arrest of three Mpumalanga suspects linked to an alleged R27 million COVID-19 Temporary Employer-Employee Relief Scheme (TERS) fraud involving more than 700 fictitious employees.
The suspects, reportedly a construction company director, his spouse and a relative, were arrested by the Directorate for Priority Crime Investigation (Hawks) following an extensive investigation into the alleged abuse of TERS funds administered through the Unemployment Insurance Fund (UIF).
Authorities allege the trio fraudulently claimed TERS benefits for non-existent workers during the COVID-19 pandemic, resulting in losses of more than R26.9 million to the UIF.
The case stems from a joint investigation by the Hawks’ Serious Corruption Investigation unit, the UIF, the Special Investigating Unit (SIU), and the National Prosecuting Authority’s Asset Forfeiture Unit.
Acting Director-General of Employment and Labour, Ms Jacky Molisane, praised the arrests and the coordinated effort by law enforcement agencies involved in the investigation.
“The Department of Employment and Labour commends the Hawks and all collaborating law enforcement agencies for their vigilance, professionalism, and determination in uncovering this extensive fraud scheme. This operation sends a clear and firm message that abuse of public resources will not go unpunished,” said Molisane.
She stressed that the TERS programme had been created as an emergency intervention to assist struggling workers and businesses during the height of the COVID-19 crisis.
“The Temporary Employer-Employee Relief Scheme was established to support workers and employers during one of the most difficult periods in our country's history. Any attempt to exploit this intervention undermines its purpose and deprives deserving beneficiaries of critical support,” she said.
Molisane also welcomed the collaboration between state institutions, saying partnerships between law enforcement and government entities remained critical in rooting out corruption and recovering stolen public funds.
“We are particularly encouraged by the strong inter-agency collaboration demonstrated in this case. Partnerships between law enforcement and institutions remain essential in detecting, preventing, and prosecuting fraud, as well as in recovering stolen funds and assets,” she added.
The Department reiterated its zero-tolerance stance on fraud and corruption, saying it would continue strengthening oversight systems, monitoring processes and compliance measures to protect public funds from abuse.
“We remain resolute in our zero-tolerance approach to fraud and corruption,” Molisane concluded.
The Department has urged members of the public to report suspected fraud or corruption linked to government relief programmes.
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