Covid-19 Ters fraudsters nabbed after stealing over R600,000

Two Directors of an engineering company have been arrested in Berea for allegedly for defrauding the Covid-19 Temporary Employer-Employee Relief Scheme (Covid-19 TERS) of R648 000.

The duo from Pusoloso Engineering Services have also had their bank accounts frozen while a forfeiture process is underway to recover the stolen money.

It is understood that between August 2020 and March 2021 the two suspects are alleged to have fraudulently applied for Covid-19 TERS for 95 people who were not their employees and without their knowledge and consent.

The Department of Employment and Labour’s Risk Management officials in Gauteng started an investigation after some employees applied for normal Unemployment Benefits, but their ID numbers revealed that they were included in a Covid-19 TERS application by the two company directors.

The duo were granted bail at the Palm Ridge Specialised Commercial Crimes Court and the matter was postponed to 3 June 2022.

UIF Commissioner, Teboho Maruping applauded Risk Management officials and police for their collaborative efforts in apprehending the suspects.

“The net is seriously closing in on fraudsters and I hope these latest arrests serve as a strong message and warning to other would-be fraudsters. Two weeks ago, another suspect was arrested in KwaZulu-Natal for allegedly defrauding the UIF of R1 million and I am truly grateful to our Risk Management officials and law enforcement agencies for their great work in bringing these and other suspects to justice.”

At least 22 suspects have been arrested for Covid-19 TERS related fraud and more are imminent.

Meanwhile, the Democratic Alliance (DA) said the Department of Social Development (DSD) is wasting taxpayers’ money by paying employees of the non-operational Mohlakeng Old Age Home.

According to party, the old age home in Rand West worth R43.5 million has not been occupied since its official launch in 26 April 2019.

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