Free State Businessman Convicted Of R1.8 Million UIF Fraud
Free State Businessman Convicted Of R1.8 Million UIF Fraud. In a recent development, a Free State businessman has been convicted for his role in defrauding the Department of Employment and Labour. The case, heard in the Bloemfontein Magistrate’s Court, highlights the severe consequences of financial misconduct and fraudulent activities, especially during times of crisis.
Background Of The Case
Lelokonyane Isak Letseng, 44, the owner of Bophelo Botle Solutions (Pty) Ltd and Izuz Gibbor Pty (Ltd), was found guilty of multiple charges including fraud and money laundering. Letseng’s fraudulent activities involved the misuse of Covid-19 Temporary Emergency Relief Scheme (TERS) funds, which were intended to support businesses and employees during the pandemic.
The Fraudulent Activities
Letseng applied for TERS funds on behalf of individuals who were purportedly employees of Bophelo Botle Solutions from March 1, 2020, to August 31, 2020. During this period, the Unemployment Insurance Fund (UIF) made nine payments totaling R847,015.32.
Subsequently, Letseng applied for a similar relief scheme for his second company, Izuz Gibbor Pty (Ltd), covering the period from July 1, 2020, to October 31, 2021. The UIF disbursed nine payments amounting to R1,010,555.92 to this company as well.
Investigation And Arrest
The fraudulent claims raised suspicions, leading to an investigation by the Directorate for Priority Crime Investigation, commonly known as the Hawks. This investigation uncovered the extent of Letseng’s fraudulent activities, resulting in his arrest.
Legal Proceedings And Sentencing
Letseng admitted to the charges of fraud and money laundering. The court consolidated these charges for sentencing purposes. As a result, Letseng received a 10-year prison sentence, which was wholly suspended for five years. The suspension is contingent upon him not being convicted of any similar crimes, including fraud or theft, during this period.
In addition to the suspended sentence, Letseng was ordered to repay the Department of Employment and Labour a total of R1,780,017.24, inclusive of 11.25% interest. The repayment schedule mandates that this amount be settled by November 30, 2029.
For the money laundering charges, Letseng was fined R10 million, which was also wholly suspended for five years under the condition that he does not commit similar offences during this time.
Corporate Penalties
The court also addressed the involvement of Bophelo Botle Solutions and Izuz Gibbor Pty (Ltd) in the fraudulent activities. Bophelo Botle Solutions was found guilty of fraud and fined R2 million, which was suspended for five years, provided the company does not engage in fraud, theft, or dishonesty during the suspension period.
Additionally, the company faced a R3 million fine for money laundering, which was also suspended for five years under similar conditions.
Conclusion
This case underscores the gravity of financial misconduct and the stringent measures that can be imposed on individuals and companies involved in fraud and money laundering. It serves as a reminder of the legal and financial repercussions that follow such criminal activities, particularly when exploiting relief schemes designed to assist during emergencies.
