A company director, found guilty of defrauding the Covid-19 Temporary Employer Relief Scheme (TERS), was fined R450,000.
Luyanda Brian Vava, 34, and his business entity, Widelink Technologies Pty Ltd, were convicted and sentenced by the East London Commercial Crimes Court on seven counts of fraud.
The Directorate for Priority Crimes Investigation (known as the Hawks) arrested Vava in April 2024, almost four years after the fraud.
Explaining the merits of the case, Hawks spokesperson Warrant-Officer Ndiphiwe Mhlakuvana said in 2020, during the Covid-19 lockdown, employers were reportedly encouraged to continue paying their workers and later claim from Covid-19 Temporary Employer Relief Scheme (TERS).
“Vava intentionally and unlawfully lodged a claim from Unemployed Insurance Fund (UIF) on behalf of his employees through his company.”
He said the employees denied receiving any payment from Vava which led to the investigation by Special Investigation Unit (SIU).”
Mhlakuvana said the matter was later referred to the Hawks and a thorough probe revealed that there was material misrepresentation claim made to defraud the UIF.
He said TERS suffered an actual prejudice of R300,000 and the employees didn’t receive a cent of the money.
Vava was arrested on April 29, 2024, and following an appearance in the East London Magistrate’s Court the same day, he was released on bail of R1,000.
On Friday, Vava was sentenced to pay a fine of R450,000 or to undergo three years imprisonment.
The Hawks said his business entity was sentenced to also pay a fine of R450,000 which is wholly suspended for a period of three years.
“In addition, Vava was ordered to pay R5,000 immediately and then pay R10,000 each month starting on October 31, 2024.”
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