Early on Thursday, the Special Investigating Unit, supported by specialised units of the South African Police Service, conducted coordinated raids across KwaZulu-Natal and Gauteng as part of a large-scale investigation into an alleged R161 million fraud involving the Unemployment Insurance Fund’s Covid-19 Temporary Employer/Employee Relief Scheme. The operation targeted offices, residences, and the UIF Head Office in Pretoria in a move authorities describe as a major strike against organised financial crime.
The SIU confirmed the operation was authorised by the Special Tribunal and involved the National Intervention Unit, the Hawks, and the Tactical Response Team. Spokesperson Kaizer Kganyago said the raids aimed to recover key documents and digital evidence and to trace the flow of funds within a syndicate suspected of submitting false TERS applications on behalf of individuals who were not employed by the applying companies. “This operation is part of a broader investigation into a well-organised syndicate that allegedly defrauded the UIF of R161 million through false claims,” Kganyago said.
The SIU said the investigation, authorised under Proclamation R8 of 2021, uncovered a highly organised network that allegedly orchestrated fraudulent claims across multiple companies and jurisdictions. The funds obtained were reportedly not paid to workers but instead circulated among members of the syndicate in a manner consistent with money laundering.
Thursday’s raids focused on gathering evidence, including bank statements, TERS applications, memoranda of understanding with the UIF, correspondence, computers, mobile devices, and network equipment. Sixteen companies and more than thirty-five individuals are implicated in the investigation, with properties searched in major cities including Johannesburg, Sandton, Fourways, Pietermaritzburg, Durban, Port Shepstone, Margate, and Pretoria.
The operation also involved investigations into UIF officials at the Head Office in Pretoria. The SIU said it is examining whether staff played a role in facilitating fraudulent applications, bypassing audits, or removing irregular profiles from the UIF system.
According to the SIU, the material seized will undergo forensic analysis to support both civil and criminal investigations. The Unit intends to recover financial losses suffered by the state and will refer evidence pointing to criminal conduct to the National Prosecuting Authority under the Special Investigating Units and Special Tribunals Act.
Kganyago described the coordinated raids as a critical step in dismantling what authorities say is a sophisticated syndicate operating across multiple provinces. “The SIU will pursue civil litigation to recover state losses and will ensure that evidence of criminal conduct is handed over to the NPA for further action,” he said.
The operation highlights the SIU’s ongoing focus on uncovering large-scale fraud within Covid-19 relief programmes and demonstrates the level of cooperation between investigative units and specialised police teams in tackling financial crimes affecting the public sector.
