The Special Investigating Unit (SIU) has recovered at least R71 million from companies that unduly claimed from the Unemployment Insurance Fund's (UIF) Temporary Employer/Employee Relief Scheme (TERS).
This comes after the corruption-busting unit commenced investigations into TERS funding in June 2021.
"The SIU was authorised by President Cyril Ramaphosa to investigate allegations made in respect of the affairs of the UIF in terms of Proclamation R.8 of 2021.
“The SIU investigated TERS payments to persons who were not entitled to receive such payments; submitted false, irregular, invalid, or defective applications to the UIF, including the causes of such maladministration," an SIU statement read.
The government set up TERS to assist struggling companies during the Covid-19 pandemic.
"To date, the SIU has recovered cash to the value of approximately R71.4 million since it commenced with investigations. The figure includes R9.9 million which was paid directly to the UIF by companies.
"Some of the companies that paid money directly to the UIF include South African Airways Technical, which paid back R8.8 million, and RH Matjhabeng Hospital, a private hospital in the Free State province, among others. The hospital paid back R488,458.21.
"The SIU investigation revealed that the hospital was not supposed to have applied and received TERS funds as their operations were not affected by Covid-19.
“The hospital management confirmed that it unduly received the funds and agreed to pay back the money to the SIU.
“Immediately after an agreement was reached, the hospital deviated from the agreement held with the SIU and paid back the money directly into the UIF account instead of the SIU," the unit said.
The SIU said it has referred any evidence of criminality to the National Prosecuting Authority (NPA) for possible prosecution.
"On 27 February, the East London Magistrate Court sentenced Zimbabwean citizen Admirer Sibanda to one year imprisonment and ordered that, after serving the prison sentence, he be deported by the Home Affairs department to his country of origin.
“Sibanda pleaded guilty to the identity theft charge, which was used to commit TERS fraud," the SIU said. - SAnews.gov.za
