LABOUR DEPARTMENT HAILS HAWKS FOR ARRESTS IN R27 MILLION TERS FRAUD SCHEME 

The Department of Employment and Labour has welcomed the arrest of three suspects in Mpumalanga in connection with an alleged R27 million COVID-19 Temporary Employer Employee Relief Scheme (TERS) fraud scheme involving more than 700 ghost employees.

The arrests, carried out by the Directorate for Priority Crime Investigation (Hawks), represent a significant step forward in protecting public funds intended to provide relief to workers affected by the COVID-19 pandemic.

The suspects, including a construction company director, his spouse, and a relative, allegedly misused the TERS system by claiming benefits for fictitious employees. This resulted in an estimated loss of over R26.9 million to the Unemployment Insurance Fund, which administers TERS on behalf of the Department.

The case follows a joint investigation conducted by the Hawks’ Serious Corruption Investigation unit, the Unemployment Insurance Fund (UIF), the Special Investigating Unit (SIU), and the National Prosecuting Authority’s Asset Forfeiture Unit.

Acting Director-General of Employment and Labour, Ms Jacky Molisane said; “The Department of Employment and Labour commends the Hawks and all collaborating law enforcement agencies for their vigilance, professionalism, and determination in uncovering this extensive fraud scheme. This operation sends a clear and firm message that abuse of public resources will not go unpunished.”

“The Temporary Employer-Employee Relief Scheme was established to support workers and employers during one of the most difficult periods in our country’s history. Any attempt to exploit this intervention undermines its purpose and deprives deserving beneficiaries of critical support.”

“We are particularly encouraged by the strong inter-agency collaboration demonstrated in this case. Partnerships between law enforcement and institutions remain essential in detecting, preventing, and prosecuting fraud, as well as in recovering stolen funds and assets.”

“The Department will continue to strengthen oversight mechanisms and work closely with its entities and law enforcement partners to safeguard public funds. We remain resolute in our zero-tolerance approach to fraud and corruption,” concluded Molisane.

The Department of Employment and Labour reiterates its commitment to transparency, accountability, and the protection of social security funds. Continuous improvements to systems, monitoring processes, and compliance measures remain a priority to prevent future abuses.

Members of the public are encouraged to report suspected fraud or corruption involving government relief programmes.