South Africa
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Nxesi welcomes convictions, sentences handed down to COVID-19 Ters fraudsters

JOHANNESBURG - Employment and Labour Minister Thulas Nxesi on Thursday welcomed a number of convictions and prison sentences handed down in connection with UIF COVID-19 Temporary Employer/Employee Relief Scheme (TERS) fraud.

Ten people were found guilty and sentenced to direct imprisonment or suspended sentences for defrauding the COVID-19 relief scheme.

This was revealed on Wednesday when Nxesi and the Unemployment Insurance Fund attended a meeting of Parliament's portfolio committee on employment and labour.

At least 30 people have been arrested for COVID-19 TERS-related offences so far.

UIF Commissioner Teboho Maruping revealed the accused faced charges of fraud, theft and money laundering.

Members of Parliament heard the Asset Forfeiture Unit had recovered R133 million from various companies and individuals. R120 million had already been returned to the UIF while R3.4 billion was also paid back as part of phase one of the Covid-19 TERS "Follow The Money" project.

Nxesi praised authorities for their efforts in bringing the fraudsters to justice, saying they helped themselves to funds meant for distressed workers during the devastating COVID-19 lockdown.

He also welcomed the recent arrest of a department official in KwaZulu-Natal and has stressed corruption cannot be tolerated.

In 2020, Nxesi said directives were being amended and the large volume UIF claims were the reason for delays in payments at the time.