The Special Investigating Unit (SIU) is today conducting a coordinated search and seizure operation across KwaZulu-Natal and Gauteng as part of its ongoing investigation into a sophisticated syndicate that allegedly siphoned approximately R161 million from the Unemployment Insurance Fund’s (UIF) Covid-19 Temporary Employer/Employee Relief Scheme (TERS). The operation is supported by specialised units of the South African Police Service (SAPS), including the National Intervention Unit (NIU), the Directorate for Priority Crime Investigation (DPCI), commonly known as the Hawks, and the Tactical Response Team (TRT).
The operation, authorised by a warrant issued by the Special Tribunal, targets multiple premises, including offices, residences, and the UIF Head Office in Pretoria. It is linked to 16 companies and over 35 individuals suspected of being central to the fraudulent scheme, including Thamsanqa Madlala, a key person of interest and director of Bokoharama Construction.
Nature of the Alleged Fraud:
The SIU investigation, authorised by Proclamation R8 of 2021, has uncovered evidence suggesting a well-organised syndicate orchestrated the submission of false TERS applications on behalf of individuals who were not employees of the applicant companies. The substantial funds received were not paid to workers; instead, they were distributed among syndicate members in patterns consistent with money laundering.
Key Focus of Today’s Operation:
SIU teams, assisted by the SAPS NIU and TRT, are searching for crucial evidence, including:
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Documents: Original and copies of bank statements, fraudulent TERS applications, Memoranda of Understanding (MOUs) with UIF, and all related correspondence.
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Digital Evidence: Computers (desktops, laptops), data storage devices, cellular phones, and network equipment belonging to or used by the targeted companies and individuals.
Primary Targets and Locations:
The operation focuses on three key groups across KwaZulu-Natal and Gauteng:
1. Suspect Companies & Directors:
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Nakomang Trading Enterprise (Gauteng): Received R19,183,197.34. Searches are underway at its Sunninghill offices and linked residences in Rosettenville and Kenilworth, Johannesburg.
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Lubelo Hlomuka Holdings t/a SA Scrum Assembly (KZN/Gauteng): Received R15,917,398.98. Its director, Nhlakanipho Mngomezulu, is identified by the SIU as the syndicate’s alleged mastermind (“Mkhulu”). Searches are being conducted at associated addresses in Pietermaritzburg, Durban (Kenville), Sandton, and Fourways.
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Bokoharama Construction (KZN): Received R18,197,289.94. Its director, Thamsanqa Madlala, is a key person of interest and a local councillor at the Ray Nkonyeni Municipality. Searches are focused on locations in Port Shepstone, including Anerley and Margate.
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Other major companies searched include Aventador Gate (Pretoria), which received R3.8million and several based in KwaZulu-Natal.
2. Key Persons of Interest (Alleged Syndicate Operators):
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Thamsanqa Madlala: As a primary person of interest, Madlala’s company received R18 million in TERS funds. The SIU investigation reveals that payments were directed toward asset purchases for the alleged mastermind and other syndicate figures.
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Yolanda Nombuso Mgobo: Identified as a central figure who received and distributed over R18.6 million in syndicate funds. Searches are underway at her residences in Scottburgh and Amanzimtoti, as well as at premises linked to her fiancé.
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Sphamandla Sokhela and Nhlakanipho Zondi (Attorney): Alleged proxies for Mngomezulu. Searches are being conducted in Pietermaritzburg and Edendale.
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Senzo Gumede: Director of companies (Amakhosana Contractors and Senzisipho Pty Ltd) used to launder funds, with searches in Durban and Pietermaritzburg.
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Sboniso Ronald Cele and Simtholile Dlamini: Alleged “runners”. Searches are focused on Port Shepstone and Johannesburg (Oakdene).
3. Department of Employment and Labour (UIF) Head Office and Officials:
The SIU is searching the UIF Head Office at 230 Lillian Ngoyi Street, Pretoria. The investigation has identified several officials whose possible involvement is being probed to determine whether they facilitated fraudulent applications, bypassed audits, or cleared “victim” profiles from the UIF system.
President Cyril Ramaphosa authorised the SIU to investigate allegations made in respect of the affairs of the Unemployment UIF in terms of Proclamation R.8 of 2021. The SIU investigated TERS payments to individuals who were not entitled to receive them and submitted false, irregular, invalid, or defective applications to the UIF, including the causes of such maladministration.
The seized evidence will undergo forensic analysis to support the investigation, and the SIU will pursue civil action to correct any wrongdoing identified and recover financial losses suffered by the State. As stipulated by the Special Investigating Units and Special Tribunals Act 74 of 1996, which governs the operations of the SIU, the Unit will refer evidence pointing to criminal conduct to the National Prosecuting Authority for further action.
