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The Department of Employment and Labour has welcomed the arrest of three suspects in Mpumalanga in connection with an alleged R27 million COVID-19 Temporary Employer-Employee Relief Scheme (TERS) fraud involving more than 700 ghost employees.

The arrests, carried out by the Directorate for Priority Crime Investigation (Hawks), represent a significant step forward in protecting public funds intended to provide relief to workers affected by the COVID-19 pandemic.

The suspects, including a construction company director, his spouse, and a relative, allegedly misused the TERS system by claiming benefits for fictitious employees. This resulted in an estimated loss of over R26.9 million to the Unemployment Insurance Fund, which administers TERS on behalf of the Department.

The case follows a joint investigation conducted by the Hawks' Serious Corruption Investigation unit, the Unemployment Insurance Fund (UIF), the Special Investigating Unit (SIU), and the National Prosecuting Authority's Asset Forfeiture Unit.

Acting Director-General of Employment and Labour, Ms Jacky Molisane said; “The Department of Employment and Labour commends the Hawks and all collaborating law enforcement agencies for their vigilance, professionalism, and determination in uncovering this extensive fraud scheme. This operation sends a clear and firm message that abuse of public resources will not go unpunished."

“The Temporary Employer-Employee Relief Scheme was established to support workers and employers during one of the most difficult periods in our country's history. Any attempt to exploit this intervention undermines its purpose and deprives deserving beneficiaries of critical support."

“We are particularly encouraged by the strong inter-agency collaboration demonstrated in this case. Partnerships between law enforcement and institutions remain essential in detecting, preventing, and prosecuting fraud, as well as in recovering stolen funds and assets."

“The Department will continue to strengthen oversight mechanisms and work closely with its entities and law enforcement partners to safeguard public funds. We remain resolute in our zero-tolerance approach to fraud and corruption," concluded Molisane.

The Department of Employment and Labour reiterates its commitment to transparency, accountability, and the protection of social security funds. Continuous improvements to systems, monitoring processes, and compliance measures remain a priority to prevent future abuses.

Members of the public are encouraged to report suspected fraud or corruption involving government relief programmes.

For media inquiries, please contact:

Teboho Thejane

Departmental Spokesperson

082 697 0694/ teboho.thejane@labour.gov.za

                                                                                   -ENDS-

Issued by: Department of Employment and Labour

 

 

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Summary: 18 May 2026

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Archive: December 1899

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The Minister of Employment and Labour, Ms. Nomakhosazana Meth, has noted the release of the Quarter 1 of 2026, Quarterly Labour Force Survey (QLFS) results by the Statistician General, Mr. Risenga Maluleke on 12 May 2026. The Stats SA QLFS paints a sobering picture of the state of the labour market in our country. The Department notes with concern, the increase in the official unemployment rate to 32,7%, up from 31,4% in the previous quarter, as well as the continued vulnerability of young people, women, and work seekers in historically disadvantaged communities.

 

The Department acknowledges the difficult socio-economic realities confronting millions of South Africans who continue to search for sustainable employment opportunities amid the slow economic growth, global uncertainty and structural constraints in key sectors of the economy.

 

We remain firmly committed to implementing coordinated interventions aimed at stimulating economic growth, protecting existing jobs and creating new employment opportunities across all sectors. In this regard the DEL continues to intensify the implementation of LAP, public employment support initiatives, workplace training opportunities, and strengthened partnerships with business, labour and civil society.

 

The DEL is particularly concerned about the persistent high levels of youth unemployment. The Stats SA data indicates that unemployment among young people aged 15-24 remains alarmingly high, exceeding 60%, while millions of young South Africans remain outside employment, education and training. This reality requires urgent and collective action from all social partners.

 

“We call on the private sector to work collaboratively with government in expanding investment, supporting localisation, accelerating skills absorption, and opening pathways for youth employment and entrepreneurship," says Minister Meth.

The Department hereby restates that unemployment is not merely an economic statistic, but a social challenge affecting all and the future aspirations of young people. We therefore remain committed to building an economy that creates opportunities, reduces inequality and restores hope to the people of South Africa.

 

The Department has several programmes to help stimulate job creation. This includes the Labour Activation Programme (LAP) and enhancing the coordination of employment interventions, such as supporting the Presidential Youth Employment Initiatives (PYEI). Employment and Labour Entities, Productivity SA and the Unemployment Insurance Fund have partnered on a Business Turnaround and Recovery Programme with a total budget value of just over R165 million. The objective of this programme is to prevent job losses.

 

Minister Meth re-iterates that the Department of Employment and Labour will continue to work closely with entities to expand labour market interventions, support skills development, strengthen inspections and enforcement services, and ensure greater access to employment services for work seekers.

 

“While the latest QLFS figures are deeply concerning, we remain resolute in advancing economic reforms and employment focused interventions that will place South Africa on a sustainable path towards growth, dignity and decent work for all," says Minister Meth.

 

ENDS//

 

Media enquiries:

Ms. Thobeka Magcai, Ministry Spokesperson. Email: Thobeka.Magcai@Labour.gov.za 072 737 2205.

 

Issued by: MINISTRY OF EMPLOYMENT AND LABOUR DATE: 13 MAY 2026​

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Summary: 13 May 2026

Is Highlight: No

Staff Only: No

Media Release: No

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Archive: December 1899

ArchiveDate: 18991230

ArchiveDateString: December 1899