SIU Raids In KZN And Gauteng Over Alleged R161 Million UIF COVID-19 TERS Theft

The Special Investigating Unit (SIU) has launched large-scale raids across KwaZulu-Natal and Gauteng as part of its ongoing investigation into the alleged theft of R161 million from the Unemployment Insurance Fund (UIF).

Search-and-seizure operations were carried out at the UIF’s Pretoria offices, as well as multiple private homes and commercial properties linked to the probe.

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According to the SIU, the money was allegedly diverted from the UIF’s COVID-19 Temporary Employer/Employee Relief Scheme (TERS), which was created to support workers during the pandemic.

Among those implicated is Thamsanqa Madlala, an uMkhonto weSizwe (MK) Party councillor at the Ray Nkonyeni Local Municipality. It’s alleged that Madlala used a portion of the UIF funds to purchase several taxis.

UIF COVID-19 TERS Scam Under Spotlight

More than 35 companies and 16 individuals have been identified as suspects in what investigators believe was a well-organised syndicate targeting UIF relief funds.

The SIU said the group allegedly submitted fraudulent claims to siphon money from the TERS programme. While payments were made to 16 companies, the funds reportedly never reached the workers they were intended to support.

Instead, investigators say they have obtained evidence showing the money was redirected and split among members of the syndicate, following patterns typically associated with money laundering.

Devices and Financial Records Seized

During Thursday’s coordinated raids, SIU officials seized bank statements, computers, and mobile phones believed to contain crucial evidence.

The investigation forms part of the SIU’s broader mandate to recover state funds lost to corruption, particularly those linked to COVID-19 relief efforts.

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