Courts have dealt a blow to suspected fraudsters who have milked the Unemployment Insurance Fund’s TERS benefit scheme which was designed to help workers in distress during Corona pandemic lockdown.

Just as recently as Friday last week, the Grahamstown High Court granted the Asset Forfeiture Unit a preservation order freezing bank accounts belonging to the Eastern Cape Transport Tertiary Cooperative Limited (ECTCC) and various Taxi Associations in Gqeberha and other areas in the Eastern Cape.

The order prevents ECTCC and other Taxi Associations from transacting on twenty-five (25) bank accounts they hold with FNB, ABSA and Nedbank.

The preservation order is intended to prevent further loss of TERS funds already paid to ECTCC and various Taxi Associations. This follows an investigation of alleged misappropriation of TERS funds and complaints lodged mostly by taxi drivers in Gqeberha and surrounding areas.

The UIF paid a total amount of R23 778 937.29 to the Port Elizabeth & District Taxi Association as well as the Uncedo Transport and Business Taxi Association ostensibly covering 5 472 taxi drivers. Approximately R219 million was paid for 62 Covid TERS claims submitted on behalf of various employers by ECTCC covering 48 441 employees.

The Fund has blocked the profiles of ECTCC and the affected Taxi Associations pending investigations by law enforcement agencies. The Fund is currently investigating seventy-five (75) reported cases, sixteen (16) have been finalised and five (5) suspects have already appeared in court.

The preservation order follows on the heels of a conviction and sentence of Boitumelo Mashele last month who received a three (3) year suspended jail sentence for defrauding the UIF. The Specialised Crime Court in Pretoria also ordered her to repay R215 000.00 to the UIF after disposal of her house.

Another suspect, Mark Vorster, was arrested last month by the Hawks. Vorster, who is an accountant from Gqeberha, was nabbed on allegations that he fraudulently submitted TERS claims worth R884 000.00.　 He was granted bail of R 10 00.00 by the East London Magistrates’ Court.

Acting UIF Commissioner, Adv Mzie Yawa welcomed the concerted action by law enforcement agencies and the judiciary saying all those who have stolen money for the workers will get their comeuppance adding that they must watch out as the law will get them in the end.