The Special Investigating Unit (SIU) has welcomed a Special Tribunal order freezing a Hillcrest property worth R2.7 million that is allegedly linked to a R9.8 million Unemployment Insurance Fund Temporary Employer/Employee Relief Scheme (TERS) fraud involving KwaZulu-Natal-based Ziqoqe Construction CC.
This comes after an SIU investigation found that the company’s owner, Ndabezinhle Luthuli, allegedly received millions of rand in TERS benefits on behalf of 673 purported employees during the COVID-19 lockdown period, but failed to pay the workers or refund the money to the Unemployment Insurance Fund (UIF).
The SIU said many of the listed employees were found to be “ghost employees”, while several individuals contacted by investigators denied ever working for the company.
“The investigation established that the UIF paid a total of R9,836,047.06 in TERS benefits to Ziqoqe Construction between 21 July 2020 and 30 September 2024. However, the SIU’s investigation found that Luthuli did not pay any of the alleged 673 employees and failed to refund UIF,” the corruption watchdog said.
“Many of the listed employees were found to be “ghost employees”, and several individuals contacted by investigators denied ever working for the company”.
The SIU added that it “discovered that a property worth R2,700,000, situated in the Sienna Estate Scheme in Hillcrest, eThekwini Municipality, KwaZulu-Natal, was purchased in November 2023 through purported fraudulent transactions, suggesting that the profits from illegal activities were utilised to benefit Luthuli”.
“The Tribunal has since granted an order directing the deeds registry to restrict the immovable property registered in the name of Luthuli.The property may not be sold, transferred, or encumbered without a written agreement between the parties or an order from the court or Tribunal”.
The SIU also said that the court ordered Luthuli and Ziqoqe Construction to remain responsible for all financial obligations related to the property, including levies, insurance and other associated costs, while the matter remains before the Tribunal.
The costs of the application were reserved for determination at a later stage.
“The investigation follows the authorisation of the SIU through Presidential Proclamation R.8 of 2021 to investigate allegations of maladministration and fraud related to UIF payments, including TERS claims.
“The SIU remains committed to recovering public funds lost through corruption and maladministration, and to ensuring accountability for those who sought to exploit relief measures intended to support businesses and workers during the COVID-19 pandemic.”
