The Special Investigating Unit (SIU) has identified uMkhonto weSizwe Party (MKP) councillor Thamsanqa Madlala of Ward 14 in the Ray Nkonyeni Municipality as investigations escalate into a comprehensive national crackdown on a syndicate alleged to have diverted R161 million from the state’s UIF Temporary Employer/Employee Relief Scheme (TERS).
Madlala is one of approximately 35 individuals and 16 companies identified as targets in the SIU’s ongoing search and seizure operations. The unit states that the network operated across multiple provinces and depended on the cooperation of officials within the Unemployment Insurance Fund (UIF) to unlawfully access and redirect Covid-19 relief funds during the peak of the pandemic.
According to the SIU, Bokoharama Construction, a KwaZulu-Natal-based company under investigation, received R18,197,289.94, purportedly without meeting the eligibility criteria for the relief scheme. Madlala, identified as the company’s director, has been designated as a principal individual of interest.
Investigators verified that they have confiscated Madlala’s electronic devices, including mobile phones and laptops, as part of their efforts to track the movement of funds and gather evidence regarding the processing of payments.
During a concurrent operation on Thursday, SIU teams conducted a search at the ANC office in Umzinto seeking Madlala’s sibling, who is also suspected of having been involved in the fraudulent scheme. Although he was not physically present, investigators report that he contacted them and consented to meet in Scottburgh to surrender his devices for analysis.
The SIU states that the coordinated investigations constitute a component of a comprehensive effort to dismantle the purported network and ensure accountability for all beneficiaries. Based on initial evidence indicating that criminal proceeds were utilised to obtain property and luxury items, investigators are now progressing to the subsequent phase.
“One of the forthcoming steps will be to secure authorisation to seize assets—including houses, vehicles, and other valuables associated with the UIF-TERS fraud,” the SIU confirmed.
The UIF-TERS initiative, introduced in 2020, was established to assist workers whose incomes were impacted by Covid-19 lockdown restrictions. Nevertheless, billions were lost due to irregular claims, leading to numerous investigations.
As SIU teams persist in their operations throughout KwaZulu-Natal and beyond, an increase in arrests and confiscations is anticipated. Authorities have reaffirmed their dedication to recovering every cent unlawfully diverted from the state.
