South Africa’s prosecuting authorities have welcomed the freezing of a Mpumalanga company’s assets worth about R26-million after it was suspected of fraudulently claiming Covid-19-related funds from the Unemployment Insurance Fund (UIF) on behalf of more than 700 employees who allegedly did not exist.
The National Prosecuting Authority (NPA) said its asset forfeiture unit (AFU) secured a restraint order exceeding R26-million against assets linked to suspects accused of defrauding the UIF at the height of the pandemic.
“Investigations reveal that between October 2020 and January 2021, Company F and A Consulting CC allegedly misrepresented information to the Unemployment Insurance Fund under the Temporary Employer/Employee Relief Scheme,” said NPA regional spokesperson Monica Nyuswa on Tuesday.
“The company is alleged to have submitted more than 700 names of individuals, falsely claiming they were employees, although they had never worked for the company.”
Fleet of vehicles acquired
Nyuswa stated that the Mpumalanga Division of the High Court issued the order in accordance with Section 26 of the Prevention of Organised Crime Act.
She added that investigators believe the money did not sit idle, with funds allegedly channelled into movable and immovable assets valued at over R31-million.
“As a result, funds amounting to over R26-million were paid out, causing the UIF to suffer significant financial prejudice.
“Further investigations indicate that the funds were allegedly used to acquire various movable and immovable assets valued at over R31-million,” she said.
“These include a fleet of vehicles and additional funds linked to the suspects’ bank accounts. Criminal investigations into the matter are ongoing.”
Sale, transfer of assets prohibited
Nyuswa explained that the restraint order prohibits the sale, transfer, or concealment of the assets during the ongoing criminal investigations, and it could potentially trigger forfeiture proceedings if the state establishes them as the proceeds of criminal activity.
The NPA believes that the court’s victory delivers a clear message.
“The AFU plays a critical role in ensuring that individuals do not benefit from the proceeds of unlawful activities,” Nyuswa said.
“Through its work, the NPA continues to strengthen accountability, uphold the rule of law, and demonstrate that crime carries serious financial and legal consequences.”
The case forms part of a broader reckoning over Covid-19 relief funds—billions of rands rushed into the economy at a time of fear, lockdowns, and collapsing incomes, but now increasingly the subject of criminal investigations and asset seizures.
