Five suspects, including company directors, have been granted bail after allegedly defrauding Unemployment Insurance Fund of R26 million.
The bail conditions by the Mpumalanga Specialised Commercial Crimes Court sitting in the Middelburg Magistrate’s Court on charges of alleged fraud involving the COVID-19 Temporary Employer/Employee Relief Scheme (TERS).
Fumu Mkalira Cifu Msiska, a director of F & A Consulting CC, was granted bail of R300 000 yesterday. His wife, Gcuttrice Gladness Msiska, a director of Khulane Construction CC, was also granted bail of R300 000. Bongani Zoren Mkhonto, who is related to the couple, was granted bail of R3 000. According to the National Prosecuting Authority, the accused face 4 294 charges relating to fraud and money laundering.
READ | Former municipal officials arrested for fraud
The matter follows a successful application by the NPA’s Asset Forfeiture Unit in Mpumalanga for a restraint order exceeding R26 million against assets linked to the accused. The order was granted by the Mpumalanga Division of the High Court in terms of Section 26 of the Prevention of Organised Crime Act 121 of 1998.
It is alleged that between October 2020 and January 2021, F & A Consulting CC misrepresented information to the Unemployment Insurance Fund. The company allegedly submitted more than 700 names of individuals, falsely claiming they were employees, despite them never having worked for the company.
READ MORE | Former immigration officer sentenced for fraud
“As a result, more than R26 million was allegedly paid out through the TERS scheme, causing significant financial prejudice to the UIF. Further investigations revealed that the funds were allegedly used to acquire movable and immovable assets valued at over R31 million. These assets reportedly include a fleet of vehicles and funds linked to the suspects’ bank accounts. Criminal investigations into the matter are ongoing,” reads the NPA statement. The case was postponed to July 20, 2026, for further investigation.
