A Free State businessman appeared in the Makwane Magistrate’s Court on allegations of fraud.
Tshediso Ernest Mthembu, 42, was arrested by members of the Directorate for Priority Crime Investigation (known as Hawks) on Monday and made a brief appearance on the same day.
The provincial spokesperson for the Hawks, Warrant Officer Fikiswa Matoti said the charges relate to Covid-19 Temporary Employee Relief Scheme (TERS) fraud.
“It is alleged that in 2020, Mthembu, who was the director at Molake Management lodged an application for the Covid-19 Temporary Employee Relief Scheme (TERS) with the Unemployment Insurance Fund (UIF) on behalf of his purported employees and it was approved. The UIF made payments to the company to the amount of R259,739.10,” Matoti said.
The preliminary investigation by the Special Investigating Unit (SIU) revealed that the purported employees Mthembu claimed for were not employed by Molake Management.
“The UIF was prejudiced and suffered an amount of R259,739.10,” Matoti said.
The matter was referred to the Hawks’ Serious Commercial Crime Investigation team in Bethlehem for further investigation and this resulted in Mthembu’s arrest.
During his appearance, the court granted Mthembu R20,000 bail.
The matter has been postponed until November 18, 2024, and the case has been transferred to the Specialised Commercial Crimes Court in Bethlehem.
Last week, a businesswoman from Phuthaditjhaba was arrested on charges of fraud and money laundering relting to Covid-19 funds. She appeared in the Phuthaditjhaba Magistrate’s Court where it was revealed she applied for Covid-19 relief funds from the Department of Labour for over R199,000 for employees. However, it was uncovered the employees never existed.
She is expected back in court on November 18, 2024.