High Court freezes bank accounts linked to R3.2 million UIF fraud

High Court freezes bank accounts linked to R3.2 million UIF fraud

- Bank accounts linked to an allegedly R3.2 million fraudulent UIF payment have been frozen

- This was discovered after the real beneficiary queried why the funds had not been paid into their account

- An investigation is being carried out by the police to determine how the funds were paid into the wrong account

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On Friday the Gauteng High Court issued a R3.2 million preservation order and froze bank accounts linked to a UIF payment.

Over R5 million was allegedly fraudulently or mistakenly paid into the incorrect account.

The funds had been earmarked for 200 employees from a variety of companies. As a result bank accounts which have been associated with the alleged fraudulent activity have been frozen.

Briefly.co.za learned that the National Prosecuting Authority spokesperson Sipho Ngwema has confirmed that the High Court issued a R3.2 million preservation order.

CSG Resourcing had applied for the Covid-19 relief funds for its clients, as a labour broking company, they represented a number of individuals according to News24.

The money was not paid into the account nominated by CSG Resourcing, instead, it was paid into the bank account of Tshepang Phohole.

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The mistake was only picked up when CSG Resourcing queried why the funds had not been deposited into their account.

"Following the discovery, the matter was reported the South African Police Service (SAPS) by CSG Resourcing. The SAPS referred it to the Financial Intelligence Centre (FIC) for urgent interventions on the bank accounts," Ngwema said.

Once the money had been paid into Phohole's it was distributed into a number of other account held by Phohole and others.

"This constitutes fraud and or theft. These numerous other accounts were then utilised to further transfer the funds into other accounts, thereby attempting to disguise the original origin of the funds, and by doing so committing the offence of money laundering," said Ngwema.

The investigation is still in progress. The police are waiting for confirmation from the UIF to show when the details of the relief payment was manipulated and the bank account changed.

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Source: Briefly.co.za

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