Employment And Labour’s UIF welcomes 135-Year Sentence Of bookkeeper for R11 Million Covid-19 TERS Fraud
19 August 2022

The Unemployment Insurance Fund (UIF) strongly welcomes the 135-year sentence meted out to Bookkeeper, Lindelani Gumede, for defrauding R11 million from the Fund’s Temporary Employer-Employee Relief Scheme (Covid-19 TERS).

 

The bookkeeper submitted Covid-19 TERS claims on behalf of clients but conveniently forgot to make the clients aware. Subsequently, an amount of R11,1 million was paid to Gumede’s business accounts and he used the money for a lavish lifestyle by splurging on luxury items.

 

However, his Bookkeeping clients realised something was amiss after they were harangued by their employees for not paying the Covid-19 TERS monies purported to have claimed, and they reported the matter to the police. Following joint investigations between the UIF and the police, Gumede was arrested and pleaded guilty in court.

 

Yesterday, 18 August 2022, Gumede was sentenced to 135 years for 32 counts of fraud.

 

UIF Commissioner, Teboho Maruping, has welcomed the sentence, praising the UIF’s Risk Management officials, the HAWKS, and National Prosecuting Authority (NPA) for their intense collaborations in arresting and prosecuting Gumede.

 

"I hope this sentence sends a strong and clear message to those who unlawfully claimed for Covid – 19 TERS that the long arm of the law will catch up with them. The day is coming for everyone who wittingly helped themselves to monies that were meant for distressed workers during the devastating lockdowns when employees lost their income. They will not escape. Working with law enforcement agencies, we will pursue anyone suspected of defrauding the Fund"; said Maruping.

 

 "I also hope the sentence serves as a deterrent to those who contemplate stealing from the UIF", further alluded Maruping.

 

To date, at least 30 suspects have been arrested for Covid-19 TERS-related offenses. The Fund anticipates more arrests as Phase 2 of the "follow the money" project, which started in July 2022, continues.

 

Media inquiries:

Makhosonke Buthelezi

UIF Director: Communications and Marketing

071 491 7236

 

 

-ENDS-

Issued by: Department of Employment and Labour

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