The Special Investigating Unit, supported by specialised police units, carried out coordinated search operations across KwaZulu Natal and Gauteng on Thursday as part of a major investigation into a R161 million fraud scheme linked to the Unemployment Insurance Fund’s COVID 19 Temporary Employee Relief Scheme.
The searches, authorised by the Special Tribunal, targeted multiple locations including homes, business premises, and the UIF head office in Pretoria. The operation forms part of an ongoing probe into fraudulent TERS applications submitted for individuals who were never employed by the companies lodging the claims. More than 35 suspects and 16 companies have been implicated.
The investigation centres on a syndicate alleged to have manipulated the system by submitting falsified claims and diverting relief funds intended for distressed workers. The conduct under scrutiny is believed to reflect patterns consistent with money laundering. One of the key figures identified is Thamsanqa Madlala, director of Bokoharama Construction.
The SIU has also focused its attention on UIF employees, with investigators examining whether certain officials may have facilitated the irregular claims by bypassing auditing controls or interfering with internal systems. The broader investigation stems from a proclamation issued by President Cyril Ramaphosa in 2021, authorising the SIU to investigate maladministration and irregular TERS payments.
Evidence collected during the latest round of searches will undergo forensic analysis, and the SIU has indicated that it intends to pursue civil action to recover losses to the state. Officers involved in the operation, including members of the National Intervention Unit and the Tactical Response Team, have seized documents and digital devices believed to contain information such as bank records, fraudulent applications, correspondence, and agreements linked to the UIF.
The operation has focused on three principal entities located in Gauteng and KwaZulu Natal. These include Nakomang Trading Enterprise, which allegedly received more than R19 million, and Lubelo Hlomuka Holdings, trading as SA Scrum Assembly, reported to have received R15.9 million. The latter’s director, Nhlakanipho Mngomezulu, is alleged to be the ringleader of the scheme. Searches linked to both entities are taking place in Pietermaritzburg, Kenville in Durban, Sandton, and Fourways.
Bokoharama Construction, led by Madlala, is suspected of receiving over R18 million. Police have conducted related searches in Port Shepstone, Anerley, and Margate on the KwaZulu Natal South Coast.
Another company under scrutiny is Aventador Gate in Pretoria, which is believed to have benefited from approximately R3.8 million in fraudulent claims. Several other KwaZulu Natal based businesses are also implicated.
Individuals suspected of managing financial flows within the network include Yolanda Nombuso Mgobo, who is believed to have received and disbursed more than R18.6 million. Searches at her homes in Scottburgh and Amanzimtoti, along with properties linked to her fiancé, are currently under way.
Additional persons of interest include Sphamandla Sokhela and attorney Nhlakanipho Zondi, alleged proxies for Mngomezulu, with searches taking place at their Pietermaritzburg and Edendale premises. Senzo Gumede, director of Amakhosana Contractors and Senzisipho Pty Ltd, is suspected of laundering funds, while Sboniso Ronald Cele and Simtholile Dlamini are believed to have acted as runners for the syndicate.
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