UIF lauds National Prosecuting Authority for the conviction of covid-19 TERS fraudster and puts others on notice

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09 July 2021

Those who defrauded the Unemployment Insurance Fund TERS benefit are on notice: They will be caught and made to pay for their actions.

This is the message of the UIF following the successful conviction of Covid TERS fraudster, Boitumelo Mashele whose company was paid a total amount of R736 598,19.

Ms Mashele was found guilty by the Specialised Crime Court of Pretoria this week and received a 3 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.

UIF paid money into a bank account that was provided by Ulwembu Business Services where Mashele worked. 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.

“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,” said Advocate Mzie Yawa, UIF’s current Acting Commissioner.

This is the third successful conviction of Covid TERS fraud and the UIF is determined more will follow as 16 arrests have already been made by the Police.

“The UIF has further identified 46 fraud cases through the “follow the money project” and we are confident more arrests will be made soon,” said Yawa.

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.

Media enquiries:

Makhosonke Buthelezi

Director: UIF Communication & Marketing

071 491 7236

Musa Zondi

Acting Departmental Spokesperson

"Please continue adhering to the lockdown regulations. Wash hands or sanitise your hands regularly and wear your mask at all times."

-ENDS-

Issued by: Department of Employment and Labour