The Special Investigating Unit (SIU) has recovered R229 million linked to irregular payments made by the Unemployment Insurance Fund (UIF) for the temporary employers relief scheme (Ters).
The recovery was made after former employment and labour minister Thulas Nxesi referred allegations of irregularities in the UIF and asked for the review of the Auditor-General’s findings on payment of Ters during the Covid-19 pandemic.
During a briefing to the standing committee on public accounts on Friday, SIU acting national chief investigating officer Zodwa Xesibe said their investigation had focused on maladministration and unlawful conduct.
Xesibe said the UIF-TERS investigation was conducted in two phases after 26 key audit observations were identified from the Auditor-General’s report.
“The SIU extracted data from UIF-Ters server in relation to entities that submitted claims for Ters. The data revealed that UIF paid approximately R57.4 billion to 240 000 entities,” she said.
The investigation focused on civil servants SANDF members and deceased people who received the Ters benefits.
It also looked into entities that claimed the benefits that were identified through “the follow money” and reports form various sources such as Corruption Watch and whistle blowers.
“At least 6 000 employees were identified within 24 government departments with the assistance of the Department of Public Service and Administration,” Xesibe said, adding that additional information was received and investigation was ongoing.
She said their investigation found that there was fraudulent use of ID documents by foreign nationals and double-dipping by civil servants while companies submitted fraudulent claims for their former employees.
Out of 5763 matters involving civil servants that were investigated, 4699 have been finalised with 1064 outstanding.
The amount irregularly paid out to civil servants totalled R114 million.
Xesibe said 59 of the matters related to soldiers and 19 have been completed.
The SIU has completed 25 cases relating to payments made to 52 dead persons while only 36 investigations were completed to payments made to 53 prisoners.
Xesibe said the SIU had investigated 760 entities that claimed for and received Ters payments.
“In instances where Ters claims were not due and payable, acknowledgments of debt were signed to recover the payments. Of the 760 allegations received, the SIU has finalised investigations into 545 entities.”
She said their investigation investigated 6687 matters and 4624 were finalized to date.
There were 174 referrals for disciplinary proceedings against officials, 738 referrals to the National Prosecuting Authority and 23 to other institutions such as the Home Affairs Department, Asset Forfeiture Unit and SARS.
“The total amount recovered is R229 439 050.15,” said Xesibe.
She said the investigation into 1100 entities for Ters claims with a potential recovery of R7.2 billion has commenced.
“We expect to complete the investigation by 31 December 2025.”
Xesibe also told the parliamentarians that their investigation showed that the labour department’s Unemployment Insurance Fund did not conduct due diligence when it administered the Ters that was introduced during the Covid-19 pandemic.
There was an inadequate skill to deal with UIF Ters applications.
“The employees deployed to deal with the assignment did not have adequate skills,” she said.
Xesibe said the UIF had incurred fruitless and wasteful expenditure as it hired 12 auditing firms to conduct the very same investigation the ISU did.
SIU head Andy Mothibi said it appeared that when Ters was announced, everyone saw an opportunity and vulnerability of the UIF systems.
“The UIF did not have systems and capability to detect and go through each transaction to determine this individual qualifies for the claim. This is something UIF should have done and detected it similarly to how our team detected and stopped it at the time,” Mothibi said.
DA MP Farhat Essack said they were shocked that UIF hired 12 audit firms to do the same work done by the SIU.
“I just don’t seem to understand and comprehend this fruitless and wasteful expenditure,” Essack said.
