SIU Secures R27m in TERS Fraud Recoveries and Asset Freezes

Posted 20 May 2026 Written by Acts Online
Category Labour & Employment

Brought to you by SAnews: In terms of the Special Investigating Units and Special Tribunals Act, No. 74 of 1996, the Special Investigating Unit (SIU) has secured asset preservation orders, convictions, and arrests totaling over R27 million in relation to COVID-19 Temporary Employer/Employee Relief Scheme (TERS) fraud under the Unemployment Insurance Act, No. 63 of 2001.

Mpumalanga Asset Preservation and Arrests

The High Court of South Africa, Mpumalanga Division, has issued a preservation order against assets suspected to be the proceeds of crime. The preserved assets include three properties in Pretoria, Middelburg, and White River, alongside household goods, office equipment, and bank accounts. The SIU and the Directorate for Priority Crime Investigation (the Hawks) also secured the freezing of the following vehicles and equipment:

  • A 2019 Land Rover Range Rover L560
  • A 2011 Toyota Fortuner
  • A 2005 Mercedes-Benz C180 Kompressor
  • A 2015 BMW X6
  • A 2019 Mercedes-Benz V250 D
  • A 2010 Caterpillar backhoe loader

This follows the appearance of three individuals in the Middelburg Magistrate’s Court on charges of fraud involving fabricated employees. The accused allegedly submitted fraudulent claims to the TERS scheme, channeling funds from A & F Consulting to Khulani Quality Contribution, an entity linked to the accused.

Free State Conviction

In a separate matter, the Heilbron Magistrates’ Court has convicted Ente Thibello Sekhoto and his company, Batlokoa Circle 12 Plaster Services, for fraud and money laundering. The SIU’s investigation revealed that Sekhoto fraudulently claimed R201,812.36 from the Unemployment Insurance Fund (UIF) on behalf of individuals who were not employed by his company, causing direct financial loss to the Department of Employment and Labour.

Under Act 74 of 1996, the SIU remains authorized to initiate civil proceedings in the High Court or a Special Tribunal to correct wrongdoing and recover financial losses suffered by the State.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; however, professional advisors must maintain strict ethical compliance and reporting standards under the Financial Intelligence Centre Act, No. 38 of 2001, when dealing with client funds.
  • For your business: Ensure robust internal controls and audit trails for all historical and current government relief claims, as the SIU and Hawks continue retroactively auditing TERS disbursements.
  • For your clients: Employers who claimed TERS benefits must ensure all employee records, payroll data, and disbursement receipts are fully reconciled to mitigate the risk of clawbacks, asset forfeiture, or criminal prosecution.

Originally published at https://www.sanews.gov.za/south-africa/siu-welcomes-crackdown-ters-fraud

The views expressed herein are those of the author and do not necessarily reflect those of Acts Online. Acts Online accepts no responsibility for the accuracy, completeness or fairness of the article, nor does the information contained herein constitute advice, legal or otherwise.