The Special Investigating Unit has frozen a R2.7 million property in Hillcrest linked to a R9.8 million UIF fraud scheme, revealing serious allegations against Ziqoqe Construction and its owner.
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The Special Investigating Unit (SIU) has welcomed a Special Tribunal ruling which granted a preservation order for a R2.7 million property in Hillcrest, KwaZulu-Natal, allegedly purchased with proceeds from a fraudulent Unemployment Insurance Fund (UIF) Temporary Employer/Employee Relief Scheme (TERS) claim worth nearly R10 million.
In a statement issued this week, the SIU said the preservation order relates to a property linked to Ziqoqe Construction CC and its owner.
"The property is linked to Ziqoqe Construction CC. It is connected to the alleged fraudulent abuse of the Unemployment Insurance Fund's Temporary Employer/Employee Relief Scheme (UIF TERS) during the Covid-19 pandemic," the SIU said.
According to the SIU, its investigation found that the company owner submitted TERS applications on behalf of purported employees of the company during the Covid-19 lockdown shutdown periods between March 27 and August 15, 2020.
The SIU said UIF records showed that Ziqoqe Construction received a total of R9,836,047.06 in TERS payments between July 2020 and September 2020.
"However, the SIU's investigation found that (the owner) did not pay any of the alleged 673 employees and failed to refund UIF," the unit said.
Investigators further uncovered evidence linking the purchase of a Hillcrest property to the alleged fraud.
"The SIU discovered that a property worth R2,700,000, situated in the Sienna Estate Scheme in Hillcrest, eThekwini Municipality, KwaZulu-Natal, was purchased in November 2023 through purported fraudulent transactions, suggesting that the profits from illegal activities were utilised to benefit (the company owner)," the SIU said.
As part of the Tribunal's order, the Deeds Registry has been instructed to place restrictions on the property.
"The property may not be sold, transferred, or encumbered without a written agreement between the parties or an order from the court or Tribunal," the SIU said.
The Tribunal further ruled that Ziqoqe Construction and the company owner remain liable for all costs associated with the property, including levies, insurance, and related expenses while the matter remains before the court. A decision on legal costs has been postponed.
The SIU said the investigation was initiated under Presidential Proclamation R.8 of 2021, which authorised the unit to investigate allegations of maladministration and fraud involving UIF payments, including TERS claims made during the Covid-19 pandemic.
Reaffirming its mandate, the SIU said it "remains committed to recovering public funds lost through corruption and maladministration, and to ensuring accountability for those who sought to exploit relief measures intended to support businesses and workers during the Covid-19 pandemic."
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