A scheme to defraud the Covid-19 Temporary Employer/Employee Relief Scheme (TERS) has been uncovered, revealing that only R74 remained in the bank account of Nikluis Manuel five years after allegedly using 662 “ghost workers” to claim R19.1 million in relief funds.
Fraudulent Claims and a Non-Existent Company
Manuel, allegedly used falsified documents to claim funds from Ters, which was established by the Unemployment Insurance Fund (UIF) to support employers and employees during the Covid-19 pandemic. Investigators found that Manuel’s company, NakoMang Trading Enterprise CC, was not registered as a business when it first applied for and received Ters funds in May 2020; it was only registered in May 2023.
The Special Investigating Unit (SIU) has obtained a preservation order from the Special Tribunal to recover the funds from Manuel and his associates, including his partner, Khanyi Angel Nokukhanya. Manuel allegedly transferred over R570,000 to Nokukhanya in October 2023 to facilitate the purchase of an apartment in Turfontein.
Tracing the Funds and Potential Asset Seizure
The SIU intends to trace the misused funds and seize assets purchased with the Ters money, including houses and vehicles. According to SIU spokesperson Selby Makgotho, the scheme involved “inflated employee numbers and fabricated documentation.” The UIF made 11 deposits into Manuel’s bank account between May 2020 and October 2023.
Investigations revealed that NakoMang Trading Enterprise CC had no employees and did not comply with legal requirements, effectively rendering it “none-existent.” Manuel allegedly submitted fraudulent applications on behalf of the 662 ghost employees.
Next Steps and Ongoing Investigation
The SIU has referred the case to the National Prosecuting Authority (NPA) for potential prosecution. While the SIU lacks the authority to make arrests, they are focused on tracing the money and securing preservation orders to recoup lost funds. The next phase of their work involves gathering witness statements through subpoenas for use in prosecution.
Frequently Asked Questions
What was the purpose of the Ters scheme?
Ters was meant to enable the Unemployment Insurance Fund (UIF) to assist employers to pay their employees who had no income or lost some income during the Covid-19 pandemic.
How much money was allegedly fraudulently claimed?
Nikluis Manuel allegedly used 662 ghost workers to claim R19.1 million from the Ters fund.
What is the current status of the investigation?
The SIU has obtained a preservation order and referred the case to the NPA for potential prosecution. They are currently tracing the funds and gathering evidence.
Given the complexities of tracing funds obtained through fraudulent schemes, what measures can be taken to prevent similar incidents in the future?