UIF Fraud Suspect Arrested on SA-Botswana Border

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UIF Fraud Suspect Arrested on SA-Botswana Border

UIF Fraud Suspect Arrested on SA-Botswana Border. The Temporary Employer/Employee Relief Scheme (TERS) was introduced to provide financial relief to employers and employees during the national lockdowns due to the COVID-19 pandemic. Unfortunately, this initiative has been marred by fraudulent activities. Recently, a significant arrest was made at the South Africa-Botswana border, highlighting the ongoing efforts to curb such fraudulent claims.

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Arrest at the Border

The Border Management Authority (BMA) arrested Tokelo Winston Frederick Modiboa at the Ramatlabama border post between South Africa and Botswana on Thursday. Modiboa, who had been on the run since November 2022, is one of 21 individuals implicated in fraudulent COVID-19 TERS claims made in 2020 and 2021.

Follow the Money Campaign

The Unemployment Insurance Fund (UIF) launched the “Follow the Money” campaign to ensure that TERS funds were reaching the intended beneficiaries and not being misused.

  • Phase 1: This initial phase involved auditing R14 billion in claims, confirming that 91% of the funds reached the workers. However, R387 million in suspected fraudulent payments were flagged for further investigation. During this phase, the UIF managed to recover R918 million.
  • Phase 2: Begun in July 2022, this phase involves a deeper audit with over 360 forensic auditors examining employers’ financial records to verify the proper use of TERS funds.

Detailed Investigation

According to a police statement, the 59-year-old Modiboa appeared in the Mmabatho Magistrate’s Court on Friday, facing charges of fraud. An investigation by the Hawks’ Serious Commercial Crime Investigation unit revealed that Modiboa received payments from three primary suspects: Kegomoditswe Parisian Moselane (36), Irving Ikgopoleng Mongale (46), and Khotjwe Goodwin Motsei (50). These individuals submitted fraudulent claims for employees who did not exist.

  • Moselane  Fraud: Moselane allegedly claimed R271,000 from the Department of Employment and Labour for 47 individuals who had never worked for her company. She transferred funds to seven other accused, including R27,000 to Modiboa.
  • Mongale’s Fraud: Mongale claimed R970,000 for 150 non-existent employees, transferring R34,000 to Modiboa and funds to 13 other accused. These suspects have since been arrested and released on bail.
  • Motsei’s Fraud: Motsei fraudulently claimed over R1 million for 133 fictitious employees. He transferred R89,500 to Modiboa and distributed funds to 11 other suspects, who were arrested in November 2022 and are also out on bail.

Culmination of Investigations

This brings the total number of suspects arrested for COVID-19 TERS fraudulent claims to 21. All the accused have been charged with fraud. Modiboa was remanded in custody and will appear in court on June 5, 2024.

Conclusion

The arrest of Tokelo Winston Frederick Modiboa at the SA-Botswana border is a significant step in the ongoing efforts to address TERS fraud. The “Follow the Money” campaign by the UIF demonstrates the government’s commitment to ensuring that relief funds reach the intended beneficiaries and that fraudulent activities are identified and prosecuted. The detailed investigations and subsequent arrests highlight the complexities and scale of the fraud, emphasizing the importance of continued vigilance and robust auditing processes.

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