The Special Investigating Unit (SIU) has secured preservation orders from the Special Tribunal to freeze assets worth millions of rand, as part of efforts to recover more than R19 million allegedly defrauded from the Unemployment Insurance Fund (UIF) through the COVID-19 Temporary Employer/Employee Relief Scheme (TERS).
The preservation orders relate to fraudulent claims amounting to R19,183,197.34 made by Nako Mang Trading Enterprise CC between 2020 and 2023. The SIU’s investigation found that the company allegedly misrepresented employment relationships to access UIF TERS funds intended to support workers affected by the COVID-19 pandemic.
Assets placed under preservation include two residential properties in Turffontein, an agricultural holding in Union Forests Plantation Agricultural Holdings, as well as several vehicles. These include a Toyota Dyna, Hyundai TQ H-1, Mercedes-Benz W205, and a Karet 1800 T Nosecone trailer.
The Special Tribunal has interdicted the respondents from selling, transferring, or otherwise disposing of the assets. It has also directed the Registrar of Deeds to place caveats and endorsements on the properties to ensure they cannot be sold or encumbered without the Tribunal’s approval.
According to the SIU, its investigation uncovered a pattern of fraud in which Nako Mang Trading Enterprise submitted false claims for UIF TERS benefits. Affidavits from individuals listed as employees confirmed that they were never employed by the company. Instead of disbursing funds to workers, as required under the scheme, the money was allegedly diverted into the personal accounts of directors and their associates.
The SIU further alleges that the company’s director, Nikluis Manuel, used the fraudulently obtained funds to purchase vehicles in cash shortly after UIF payments were made. A portion of the funds was also retained as “commission,” raising further concerns about the misuse of public money.
Investigators also traced funds to downstream beneficiaries, including Khanyi Angel Nokukhanya, who allegedly received over R569,000 from the proceeds. The funds were reportedly used in property acquisitions, a pattern the SIU says is consistent with money laundering practices aimed at disguising the origin of illicit funds through both movable and immovable assets.
The preservation orders are aimed at ensuring that the identified assets are secured while civil recovery proceedings are underway. The SIU intends to recover losses suffered by the UIF, which total more than R148.4 million across multiple entities implicated in fraudulent TERS claims.
SIU spokesperson Selby Makgotho said the move forms part of broader efforts to protect public funds and ensure accountability. “This action is necessary to safeguard public funds, prevent further dissipation of assets, and strengthen the prospects of recovery to the UIF,” Makgotho said.
The investigation forms part of a wider probe authorised by Cyril Ramaphosa under Proclamation R.8 of 2021, which mandates the SIU to investigate irregularities in UIF TERS payments. This includes cases where funds were paid to ineligible beneficiaries or where fraudulent applications were submitted.
In line with its mandate, the SIU said it will refer any evidence of criminal conduct uncovered during its investigations to the National Prosecuting Authority (NPA) for possible prosecution. It also retains the authority to institute civil proceedings in the High Court or Special Tribunal to recover financial losses suffered by the state.
The SIU reiterated its commitment to ensuring that funds intended to support workers during the pandemic are recovered and that those who benefited unlawfully are held accountable.
