Rogue company directors busted for Covid-19 Ters fraud by Free State Hawks through ghost workers

The Hawks’ Serious Commercial Crime Investigation team in the Free State has cracked down on three company directors for Covid-19 Temporary Employment Relief Scheme (Ters) funds fraud. The suspects, Tlotliso Molaba (38), Lehlohonolo Class Motaung (38), and Lelokonyana Isak Letseng (44), appeared in the Phuthaditjhaba Magistrates’ Court on Friday, 26 April, following their arrest a day after.

Their arrest was a result of an in-depth probing by the Bloemfontein’s Hawks and Special Investigating and the Special Investigating unit (SIU). The investigations shed light on the directors’ unscrupulous modus operandi using ghost workers.

Capt. Christopher Singo, provincial spokesperson for the Hawks, said preliminary investigation uncover that their companies, Afrikhan Source (Pty) Ltd, owned by Molaba and Motaung, and Izuz Gibbor (Pty) Ltd, owned by Letseng, applied for Covid-19 Ters online on two different periods between 2020 and 2021. He said the money swindled amounted to R1 ?396 053,40 and R101 555.92.

“A preliminary investigation conducted by the SIU at the Department of Employment and Labour discovered alleged fraudulent activities by the two companies. During March 2020 and October 2020, Afrikhan Source applied for Covid–19 Ters on behalf of individuals, alleging to have been affected by the Covid-19 pandemic. The Unemployment Insurance Fund (UIF) then made nine different payments to the estimated amount of R1 ?396 053,40 to the company’s account between September 2020 and December 2020. During July 2020 and October 2021, Izuz Gibbor also applied for Covid–19 Ters on behalf of individuals, alleging they were affected by the pandemic. The company then received nine different payments from UIF estimated at R101 555.92 between July 2020 and December 2021. Further investigation discovered that the individuals never worked for the two companies,” said Singo, adding that the investigation was completed for prosecution.

The Covid-19 Ters fraud accused were granted bail of R10 000 each and are expected to reappear in court on 11 June.