Two more suspects have appeared in court in connection with an alleged R1.1-million Unemployment Insurance Fund (UIF) fraud scheme in which false employment records were allegedly used to secure benefits from the state.
Siphokazi Sithole, 42, and Singapore Mtimka, 33, were arrested on October 26 and appeared before the Specialised Commercial Crimes Court in Gqeberha, Eastern Cape, facing fraud charges.
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Their court appearance brings the number of accused named in the investigation to seven, following the earlier arrests of Nandipha Tutani, Nobuntu Constance Mjili, also known as Bester, Xolile Fibi, Unathi Tambo and Amanda Peziza.
According to the Hawks, the alleged scheme resulted in the Department of Employment and Labour suffering a loss of R1 197 905.40.
False employment records under investigation
Hawks Eastern Cape spokesperson Warrant Officer Ndiphiwe Mhlakuvana said the investigation focused on the alleged manipulation of administrative processes used to submit, verify and process UIF claims.
“The alleged scheme involved the use of false employment information to create the impression that applicants had previously worked for Tower City and qualified for UIF payments based on purported employment histories and monthly salaries,” said Mhlakuvana.
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The investigation centres on allegations that people who were not entitled to unemployment benefits were assisted in submitting claims using information that falsely suggested they had qualifying employment histories.
Tutani and Mjili allegedly played key roles in recruiting applicants to participate in the scheme, while other alleged participants were enlisted to identify and bring in additional claimants.
Tutani and Mjili were each granted R2 000 bail in the earlier proceedings, while Fibi, Tambo and Peziza were released on warning.
Former labour official allegedly abused position
Tutani, who worked in the Employer Services section of the then Department of Labour in Gqeberha, is alleged to have used her position to facilitate the processing and approval of fraudulent claims.
Her duties included capturing, verifying and filing Employer Declaration of Employees forms.
Mhlakuvana said Tutani allegedly acted in common purpose with the other accused to help people who did not qualify for UIF benefits obtain payments.
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Applicants were allegedly provided with claim forms and helped to complete the documentation required to initiate the process. In some instances, they were reportedly assisted in opening bank accounts into which the benefits could be paid.
The Hawks allege that the process went beyond submitting false information, with some accused allegedly arranging to receive a share of the money once the claims had been paid.
Accused allegedly received portions of payouts
“After the benefits were paid into the designated bank accounts, some of the accused accompanied claimants to financial institutions and arranged to receive portions of the money,” said Mhlakuvana.
Investigators believe the alleged transactions formed part of a scheme through which public funds were paid out on the strength of claims that were not supported by legitimate entitlement.
- Two suspects, Siphokazi Sithole and Singapore Mtimka, appeared in court in connection with an alleged R1.1-million UIF fraud scheme involving false employment records.
- The total number of accused in the investigation has risen to seven, including Nandipha Tutani, Nobuntu Constance Mjili, Xolile Fibi, Unathi Tambo, Amanda Peziza, Sithole, and Mtimka.
- The scheme allegedly caused the Department of Employment and Labour to suffer a loss of R1,197,905.40.
- Nandipha Tutani, a former Department of Labour official, is accused of using her position to facilitate the fraudulent claims by capturing, verifying, and filing false employment forms.
- Some accused allegedly received portions of the UIF payouts by accompanying claimants to financial institutions and arranging to collect shares of the fraudulently obtained funds.
