Free State businessman Isak Letseng has been sentenced for fraud and money-laundering in relation to the Covid-19 Temporary Emergency Relief Scheme (TERS).
Letseng runs two businesses, Bophelo Botle Solutions and Izuz Gibbor, that operate in Bloemfontein and Phuthaditjhaba in Qwaqwa. He used the companies to commit the fraud.
The Bloemfontein magistrate’s court recently handed down a sentence to the convicted fraudster.
This comes after he fraudulently applied for Covid-19 (TERS) for the period March 1 2020 to August 31 2020 on behalf of individuals affected by the pandemic.
These individuals were purported to be employees of Bophelo Botle Solutions, whereas they were not employed by the company.
The Unemployment Insurance Fund (UIF) made nine payments totalling R847 015.
According to the judgment, the businessman made another fraudulent application for TERS for Izuz Gibbor.
This was for the period between July 1, 2020 and October 31, 2021, on behalf of individuals purported to be employees of the company, whereas they were not company employees.
Nine payments made
UIF made nine different payments to the total amount of R1 010 555.92.
As a result, the Department of Employment and Labour was prejudiced and suffered a loss through payments made to Letseng.
The department’s internal investigation led to the registration of a case docket and the referral of the matter to the Hawks in Bloemfontein for additional investigation.
This led to the arrest of Letseng.
Free State Hawks spokesperson Warrant Officer Fikiswa Matoti said that Letseng pleaded guilty for fraud and money laundering.
“Both charges were taken together for the purpose of sentencing. He was sentenced to 10 years imprisonment, wholly suspended for five years on condition that he is not convicted of fraud, theft or any crime involving dishonesty.
“He was instructed to repay the complainant R1 780 017.24, including 11.25% interest, within the period of five years starting from 1 November 2024 with final payment on or before 30 November 2029,” said Matoti.
“On money laundering charges, Letseng was sentenced to a fine of R10-million, wholly suspended for five years on condition that he is not convicted of the same offence during the period of suspension. He was not declared unfit to possess a firearm.”
Company fined R2m
Letseng’s company, Bophelo Botle Solutions, was found guilty of fraud and fined R2-million, wholly suspended for five years on condition that the company is not convicted of fraud, theft or a crime involving dishonesty.
The company was sentenced to a further R3-million for money laundering, wholly suspended for five years on condition that the company is not convicted of the same offence during the period of suspension.
Letseng’s other business entity, Izuz Gibbor, was also found guilty of fraud and money laundering.
It was sentenced to a fine of R2 million, wholly suspended for five years on condition that the accused is not convicted of fraud, theft or crime involving dishonesty during the period of suspension.
On charges of money laundering, the company was fined R2-million and wholly suspended for five years on condition that the accused is not convicted of money laundering during the period of suspension.
