Accounts linked to R700k in alleged UIF Covid-19 fraud frozen

Accounts linked to R700k in alleged UIF Covid-19 fraud frozen

- Bank accounts belonging to a man who is accused of defrauding the Unemployment Insurance Fund have been frozen

- The man reportedly received funds meant for 150 employees of a company situated in Durban

- Almost R700 000 was then allegedly transferred to numerous bank accounts instead of to the workers

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The Asset Forfeiture Unit has announced that the bank accounts of a man suspected of defrauding the Unemployment Insurance Fund.

Nearly R700 000 meant for employees of a Durban based company was allegedly funnelled into Thokozani Mchunu's bank account.

The Gauteng High Court ordered the accounts to be frozen after suspicions arose that the had fraudulently received funds from the UIF according to National Prosecuting Authority spokesperson Sipho Ngwema:

"It is alleged that an amount of R692 185.55 was fraudulently, or mistakenly, paid into a bank account in Durban, KwaZulu-Natal, which is registered in Mchunu's name."

In mid-April, the company successfully applied to the Covid-19 relief fund to obtain R692 185.55 for over 150 employees.

coronavirus

Minister Nxesi urged companies to ensure UIF funds reach workers during the Covid-19 crisis. Image: GCIS
Source: UGC

READ ALSO: Covid-19: Minister Nxesi urges companies to pay staff UIF funds

However, in mid-June the UIF was informed by the company that the funds had not reached the correct bank account:

"It was discovered that the funds went to Mchunu, a private individual who is neither employed by the UIF nor the National Adhesive Distributors CC."

Mchunu then transferred portions of the money to numerous bank accounts in an alleged attempt to conceal where the funds had come from.

Earlier, Briefly.co.za reported that Employment and Labour Minister Thulas Nxesi has urged employers to do the right thing and ensure that the Unemployment Insurance Funds for the Covid-19 Temporary Employer/Employee Relief Scheme are paid over the workers.

Nxesi revealed that the fund had been receiving numerous complaints from workers that the money had been withheld by their company.

"This follows a number of complaints received from workers who called in alleging that their employers have not paid them the money the UIF has disbursed as part of Covid-19 TERS, which is meant to provide temporary relief for workers who are at home or to at least meet some of their salary demands."

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Source: Briefly.co.za

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