Rustenburg - At least 20 people have been arrested for allegedly defrauding the Department of Employment and Labour through the Temporary Employer/ Employee Relief Scheme (TERS) fund of about R2.2 million.
Unemployment Insurance Fund (UIF) spokesperson Trevor Hattingh said more arrest were expected.
"The latest information we received from the Hawks as at Friday, December indicates that 20 people have been arrested to date, however, more arrests are anticipated because the operation is still under way," he said.
The National Prosecuting Authority (NPA) and the Hawks said they were arrested for allegedly defrauding the Department of Employment and Labour of over R1.4 million, but the department maintains the figure involved is R2.2 million.
"The amount of R2.2 million is linked to the latest information, but is likely to change with developments," Hatting said.
Eighteen of the arrested 20 appeared in the Molopo Magistrate's Court in Mmabatho and were granted bail.
The NPA said they were released on bail of R5 000 and R10 0000.
NPA spokesperson in the North West division, Henry Mamothame said they were facing three separate charges of fraud, alternatively theft.
"They were all granted bail of between R5 000 and R10 000 as some of them appear in all three charges. The matter was postponed to January 23, 2023 for further investigations.
"The bail conditions are that all 18 will be confined to their homes but were granted permission to go to work and also avail themselves on the said court date. They were further ordered to report to their nearest police station every Friday and Monday between 6am and 8pm. They were also ordered to surrender their passports to the investigating officer," he said.
The Hawks arrested them in North West and Gauteng provinces on Sunday and Monday.
"It is alleged that in 2020 during the Covid-19 pandemic, three sole directors of different dormant entities applied for TERS funds from the Department of Employment and Labour for 47 133 and 141 supposed employees.
"The department paid the funds to companies' bank accounts. The funds were allegedly transferred to certain individuals for personal enrichment. The department suffered a total loss of more than R1.4 million due to siphoning activities. The Hawks investigated the matters and warrants of arrests were issued," said Hawks spokesperson, Warrant Officer Bonnie Nxumalo.
The department said that so far 10 people had been convicted and sentenced to direct imprisonment or suspended sentences for defrauding of the Covid-19 TERS scheme.
Forty-six people have been arrested so far and more arrests are anticipated.
In a separate case, the Hawks in Gauteng said Prince Mubaiwa, 33, a restaurant manager at Spur in Rosebank, was arrested on November 26 for defrauding the TERS scheme.
"Mubaiwa, who is a foreign national, allegedly used a South African citizen’s identity to unduly apply for the TERS funds, amounting to about R7 500.
“A case of fraud and identity theft was registered at the Rosebank police station in August 2022, and entrusted with the Hawks’ Serious Corruption investigation," said Hawks spokesperson, Captain Lloyd Ramovha.
"The investigation has revealed that the said claim was submitted by his employer who apparently was not aware that Mubaiwa used a stolen identity document to secure employment," he said.
He appeared in the Randburg Magistrate’s Court on November 28 and he was granted R2 000 bail. The case against him was postponed to February 2 in 2023.
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