COVID-19 ters payments

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UIF TERS fraud: Woman ordered to sell home to pay back stolen funds

The UIF’s acting commissioner Mzie Yawa has said that they have identified dozens of other fraud cases and more arrests will be made

COVID-19 ters payments

Image via Adobe Stock

“Those who defrauded the Unemployment Insurance Fund TERS benefit are on notice: They will be caught and made to pay for their actions” – that’s a direct warning from the Unemployment Insurance Fund (UIF), following the conviction of a woman who had done just that.

Boitumelo Mashele worked for Ulwembu Business Services – the company was paid more than R736 000 by UIF.

“The financial institution where the account is held alerted UIF to suspicious financial transactions of the Covid TERS funds, and preliminary investigations showed that the funds were spent on Mashele’s personal expenses.  The Fund opened a criminal case with the South African Police Services and handed over the file to the Fusion Centre for further investigation,” UIF said in a statement.

The Specialised Crime Court of Pretoria found Mashele guilty and handed her a three-year suspended jail sentence.

“In addition, the court ordered her to repay R215 000.00 to UIF after disposal of her house, while the balance of R 521 598,19 will be recovered from a preservation order that was obtained by Asset Forfeiture Unit last year”

Unemployment Insurance Fund (UIF)

More arrests expected for UIF TERS fraud

According to the UIF’s current acting commissioner Mzie Yawa, this is their third successful conviction for UIF fraud. Yawa has said that more arrests will follow, after an additional 16 suspects were recently handcuffed.

He added that the UIF has identified 46 fraud cases through its “follow the money project”.

“Our continuous collaboration with different organisation such as law enforcement agencies and financial institutions adds value and credibility to our investigations leading to the apprehension of those who have defrauded the Fund,” Yawa said.

The Fund has so far recovered R 827,843,670.00 through the “follow the money project” and it is anticipated that more will be recovered as the Fund extends it with a further 12 months.