“By Fabricating Employees”: SIU Breaks Down How R27 Million in UIF Funds Was Allegedly Stolen
- The SIU welcomed arrests linked to millions meant for struggling workers during COVID-19
- Three people appeared in court over claims fake workers were used to cash in on relief money
- Investigators also seized flashy cars and homes allegedly connected to the massive fraud case
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The SIU says it has welcomed arrests, convictions and asset seizures linked to UIF-TERS fraud, where more than R27 million meant for struggling workers during COVID-19 was allegedly stolen through fake employee claims.
Three suspects appeared in the Middelburg Magistrate’s Court in Mpumalanga on 18 May 2026. They are businessman Fumu Mkalira Msiska, his wife Gladness Mkhonto Msiska, and his brother-in-law Bongani Zoran Mkhonto. In a separate case, the Heilbron Magistrates’ Court convicted businessman Ente Thibello Sekhoto and his company for fraud and money laundering involving UIF-TERS funds.
The SIU said the Mpumalanga group allegedly created fake employees and submitted false claims between April and September 2020. Sekhoto also allegedly applied for UIF relief for people who did not work for his company.
“The accused (Mpumalanga case) siphoned R26 943 793.19 from the UIF-TERS scheme by fabricating employees and submitting fraudulent claims”
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Sekhoto and his company were ordered to repay over R201,000 to the Department of Employment and Labour. Combined with the Mpumalanga case, the total amount involved is over R27 million.
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SIU details how scam allegedly worked
According to investigators, in the Mpumalanga case, hundreds of ghost employees were allegedly added every month during the six-month period. The SIU said the claims included:
- 724 ghost employees in April 2020
- 587 in May
- 743 in June
- 763 in July
- 767 in August
- 773 in September
Authorities also alleged that money was transferred between linked companies connected to the accused. The SIU added that some stolen identities were allegedly collected through scams promising grants and free driving licences, while others were reportedly obtained from a sheriff’s office.
Hawks seize luxury cars and properties
The High Court in Mpumalanga granted a preservation order to secure assets believed to have been purchased with proceeds from the alleged fraud. Authorities have since seized several luxury vehicles, including a 2019 Range Rover, a BMW X6, a Mercedes-Benz V250D and a Toyota Fortuner, as part of the ongoing investigation.
Properties in Pretoria, Middelburg and White River were also preserved pending possible forfeiture. The SIU confirmed:
“The assets have been secured pending forfeiture.”
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