Construction boss, wife and brother-in-law nabbed for R27m UIF fraud involving 700 ghost employees

Mpumalanga Hawks have arrested a 48-year-old Malawian-born construction company director and permanent South African resident, his 48-year-old wife, and his 39-year-old brother-in-law in connection with a R27 million alleged UIF fraud scheme involving COVID-19 relief funds and 700 ghost employees.

The trio handed themselves over to the Hawks on Sunday.

Mpumalanga Hawks spokesperson Lieutenant Colonel Magonseni Nkosi said, according to information received, the main suspect is the director of a construction company.

He allegedly unduly benefited from the COVID-19 Temporary Employee Relief Scheme (TERS) administered through the Unemployment Insurance Fund (UIF).

This resulted in an actual loss of R26 943 793.19 to the UIF.

“The company allegedly claimed benefits for more than 700 ghost employees,” said Nkosi.

Nkosi said the joint investigation was conducted by the Hawks’ Nelspruit-based Serious Corruption Investigation unit, the Unemployment Insurance Fund, the Special Investigating Unit (SIU) and the National Prosecuting Authority’s (NPA)  Asset Forfeiture Unit.

They revealed that the funds were channelled into various bank accounts, including those belonging to the company director, his wife and her company, as well as his brother-in-law, allegedly for personal enrichment.

“Further investigations indicated that the funds were used to acquire various movable and immovable assets.”

Nkosi said it is further alleged that the brother-in-law played a significant role in recruiting individuals under false promises of employment.

“Some of the identification particulars used in the claims allegedly belonged to former employees of the company.”

The investigation culminated in the arrest of the three suspects, who handed themselves over to the Hawks on Sunday.

The suspects were processed and are expected to appear before the Middelburg Magistrate’s Court on Monday, May 18 2026, on charges of alleged fraud and money laundering.

Meanwhile, Mpumalanga Hawks provincial head Major General Nico Gerber commended the collaborative efforts of the various law enforcement agencies involved in bringing the suspects to justice.

“The Directorate for Priority Crime Investigation, Mpumalanga is committed to serve the residents of Mpumalanga. Criticism is often laid against law enforcement for the failure to bring perpetrators to book.

“This is again another prime example of how law enforcement across agencies work together to ensure criminals are held accountable and seize the proceeds of crime. We remain steadfast in our commitment and more is to come!” Gerber added.

simon.majadibodu@iol.co.za

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