Special Tribunal Grants Freezing Order Over UIF-TERS Fraud Assets

Posted 09 June 2026 Written by Acts Online
Category Legal & Compliance

Brought to you by SAnews: The Special Tribunal, acting in terms of the Special Investigating Units and Special Tribunals Act, No. 74 of 1996, has granted a preservation order to freeze an immovable property valued at R2.7 million in KwaZulu-Natal linked to fraudulent Covid-19 Temporary Employee/Employee Relief Scheme (TERS) claims.

In terms of the order, the Deeds Registry has been directed to restrict the transfer, sale, or encumbrance of the property registered in the name of Ndabezinhle Luthuli, the sole member of Ziqoqe Construction CC. The Special Investigating Unit (SIU) established that Ziqoqe Construction CC received R9,836,047.06 in TERS benefits from the Unemployment Insurance Fund (UIF) between 21 July 2020 and 30 September 2024.

The SIU investigation revealed that the TERS applications, submitted for the lockdown periods between 27 March 2020 and 15 August 2020, were fraudulent. The key findings of the investigation include:

  • None of the 673 alleged employees received payments from the disbursed TERS funds.
  • A portion of the listed individuals were “ghost employees,” while others denied ever being employed by the close corporation.
  • The R2.7 million property was purchased in November 2023 using the proceeds of the fraudulent scheme.

Under the terms of the Special Tribunal order, Luthuli and Ziqoqe Construction CC remain liable for all ongoing financial obligations related to the property, including levies, insurance, and municipal costs, pending the finalisation of forfeiture proceedings.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; impact is channelled through professional advisory and compliance roles regarding asset forfeiture and anti-money laundering reporting.
  • For your business: Firm-level compliance processes must ensure that client onboarding and ongoing due diligence under the Financial Intelligence Centre Act, No. 38 of 2001 (FICA) verify the source of funds for high-value property transactions, particularly where funds may originate from government relief schemes.
  • For your clients: Corporate clients who claimed Covid-19 TERS benefits must ensure their payroll records, disbursement proofs, and employee registers are fully reconciled and auditable to mitigate the risk of clawbacks or asset forfeiture under the Special Investigating Units and Special Tribunals Act, No. 74 of 1996.

Originally published at https://www.sanews.gov.za/south-africa/siu-granted-freezing-order-uif-ters-obtained-property

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