Three people are set to appear before the Middelburg Magistrate’s Court on Monday, 18 May 2026 for allegedly defrauding the Unemployment Insurance Fund (UIF) over R26 million.
A 48-year-old Malawian-born permanent South African resident, his 48-year-old South African wife, and his 39-year-old South African-born brother-in-law are facing charges of fraud and money laundering.
In a press statement, the South African Police Services (Saps) said the three people handed themselves over to the Hawks on Sunday, 17 May 2026. The arrest is connected to activities dating back to 2020.
Money claimed for ghost workers
It is alleged that the construction company led by the 48-year-old Malawian-born man, who is the main suspect in the case, allegedly unduly benefited from the COVID-19 Temporary Employee Relief Scheme (TERS) administered through the UIF.
The statement details that the company allegedly claimed benefits for more than 700 ghost employees, resulting in an actual loss of R26 943 793.19 to the fund.
An investigation revealed that the funds were channelled into various bank accounts, including those belonging to the company director, his wife and her company, as well as his brother-in-law, allegedly for personal enrichment.
Money spent on assets
The investigation was conducted by the Hawks’ Nelspruit-based Serious Corruption Investigation, the Unemployment Insurance Fund, the Special Investigating Unit, and the National Prosecuting Authority Asset Forfeiture Unit.
“Further investigations indicated that the funds were used to acquire various movable and immovable assets,” read the press statement.
“It is further alleged that the brother-in-law played a significant role in recruiting individuals under false promises of employment. Some of the identification particulars used in the claims allegedly belonged to former employees of the company.”
Holding criminals accountable
The Provincial Head of the Directorate for Priority Crime Investigation in Mpumalanga, Major General Nico Gerber, commended the collaborative efforts of the various law enforcement agencies involved in bringing the suspects to justice.
“The Directorate for Priority Crime Investigation in Mpumalanga is committed to serving the residents of Mpumalanga. Criticism is often levelled against law enforcement for the failure to bring perpetrators to book.
“This is yet another prime example of how law enforcement agencies work together to ensure criminals are held accountable and that the proceeds of crime are seized. We remain steadfast in our commitment, and more is to come!” he said.
