SIU Freezes Assets Linked to R19M UIF Fraud Scheme

South Africa's Special Investigating Unit (SIU) has secured preservation orders against assets belonging to Nako Mang Trading Enterprise CC, following allegations that the company fraudulently claimed R19 million from the Unemployment Insurance Fund (UIF) under the COVID-19 Temporary Employer/Employee Relief Scheme (TERS).

The move marks another significant step in the government's ongoing efforts to recover misappropriated public funds and hold perpetrators accountable for abuse of pandemic relief programmes.

Fraud Scheme Uncovered Over Three Years

According to the SIU, the fraudulent claims were submitted over a three-year period, with investigations revealing systematic misrepresentation of employment relationships.

Affidavits from individuals listed as employees confirmed that they had never been employed by the company, exposing the claims as fabricated.

Instead of disbursing funds to legitimate workers—as required under the TERS programme—the company allegedly diverted the money into personal accounts of directors and associates.

Money Laundering Patterns Identified

The SIU's investigation uncovered a pattern consistent with money laundering, involving the movement and concealment of illicit funds through asset purchases.

Key findings include:

• Director Nikluis Manuel allegedly used UIF funds to purchase vehicles in cash shortly after disbursements

• Portions of the funds were retained as "commission"

• Downstream beneficiaries, including Ms Khanyi Angel Nokukhanya, received significant transfers—amounting to over R569,920—which were subsequently used for property acquisitions

"This pattern of layering and integration is consistent with money laundering, disguising the unlawful origin of public funds," the SIU stated.

Assets Frozen to Prevent Dissipation

The Special Tribunal has granted preservation orders on a range of assets linked to the alleged scheme, including:

• Two residential properties in Turffontein, Gauteng

• An agricultural holding in Union Forests Plantation Agricultural Holdings

• Commercial and private vehicles, including a Toyota Dyna, Hyundai TQ H-1, and Mercedes-Benz W205

• A Karet 1800 T Nosecone trailer

The Tribunal has prohibited the sale, transfer, or encumbrance of these assets and instructed the Registrar of Deeds to place restrictions on property titles, ensuring they cannot be disposed of without approval.

Part of Wider UIF Fraud Investigations

The SIU confirmed that the case forms part of a broader investigation into TERS-related fraud, with total losses across multiple implicated companies exceeding R148.4 million.

The preservation orders are intended to secure assets ahead of civil recovery proceedings, enabling the state to reclaim funds intended to support workers during the COVID-19 crisis.

Legal Action and Accountability

The investigation was conducted under Proclamation R.8 of 2021, issued by President Cyril Ramaphosa, which authorized the SIU to probe irregularities in UIF operations during the pandemic.

In line with the Special Investigating Units and Special Tribunals Act (1996):

• Evidence of criminal conduct will be referred to the National Prosecuting Authority (NPA)

• Civil proceedings will be pursued to recover financial losses

Protecting Public Funds and Restoring Trust

The SIU reiterated its commitment to ensuring accountability:

"Those who unlawfully benefit from public funds will be held accountable, and monies intended for workers during the pandemic will be recovered."

The case highlights ongoing challenges in safeguarding emergency relief funds, while also demonstrating the state's resolve to strengthen oversight, enforce accountability, and restore public trust in social protection systems.

A Continued Crackdown on Pandemic Fraud

As investigations into COVID-19 relief schemes continue, authorities are intensifying efforts to:

• Identify fraudulent claims and beneficiaries

• Recover misused public funds

• Strengthen governance frameworks

The SIU's latest action sends a strong signal that financial misconduct during national emergencies will face rigorous scrutiny and legal consequences.