POLOKWANE – The Asset Forfeiture Unit (AFU) of the National Prosecuting Authority has been granted a preservation order by the High Court of South Africa: Limpopo Division, to freeze bank accounts believed to have been used in defrauding the Unemployment Insurance Fund (UIF) Covid-19 relief.
“The court ordered that a number of bank accounts linked to a drop-in centre operating in Malamulele and its director, be frozen following evidence that she fraudulently claimed funds from the UIF. It is alleged that an amount of R3 166 498 was fraudulently paid into the NPO’s bank account,” the Director of Public Prosecutions’ Limpopo Spokesperson, Mashudu Malabi-Dzhangi.
Malabi-Dzhangi said in a statement that the NPO successfully applied to the Covid-19 temporary relief scheme (COVID19 TERS) fund, on behalf of its employees for various periods from 27 March to 15 August. These funds were to be paid over to more than 240 employees.
“Investigations, however, revealed that the director made fraudulent misrepresentation of the facts to the UIF. She created the impression that the drop-in centre battled through the worst effects of the national lockdown and was not able to pay their employees,” Malabi Dzhangi explained.
It was established that the centre terminated their workers’ contracts on 15 March, prior to the announcement of the nationwide lockdown. The centre’s employees notified the UIF that the money did not reflect in their bank account, but the UIF confirmed that it made a payment to the centre.
“The matter was reported to the Directorate of Priority Crimes Investigations (DPCI), who engaged the AFU. The AFU alerted the Financial Intelligence Centre (FIC), who intervened in terms of the Financial Intelligence Centre Act and froze the relevant accounts. At least R555 338,92 was frozen and forms part of the preservation order,” she added.
Malabi-Dzhangi said it was established that the director transferred portions of the money into other bank accounts, which are held by herself, family members as well as numerous accounts of other individuals. “The transfer of the money into these accounts was done in an attempt to disguise the theft. The reference numbers used was those of the former employees while the money was in fact paid into her accounts and those of her husband and her children.”
The Hawks arrested the director on 9 October, while her husband was arrested on 15 October.
“AFU applied for the preservation order to permanently forfeit the money to the state. The preservation of property order was obtained as a result of excellent co-operation between the NPA and the Hawks,” she said.
The operation is a direct product of the Fusion Centre which was established as an urgent intervention to address the unlawful activities related to the Covid-19 relief fund, Malabi-Dzhangi concluded.
They are currently out on bail, Malabi-Dzhangi confirmed.
Also read: Limpopo director (47) remanded in custody
