Two women arrested over R1.1 million UIF fraud scheme - IOL

The UIF has welcomed the arrest of two women accused of involvement in an alleged R1.1 million fraud scheme.

Two Eastern Cape women have been arrested over an alleged R1.1 million fraud scheme involving Unemployment Insurance Fund (UIF) claims, with investigators alleging that fraudulent applications were processed for people who did not qualify for benefits.

Nandipha Tutani, 47, and Nobuntu Mjili, 50, were arrested by the Hawks’ Serious Commercial Crime Investigation Unit in Gqeberha on September 15 and appeared in the Gqeberha Specialised Commercial Crime Court later that day.

They were released on R2,000 bail each and the case was postponed to October 5 for legal representation.

Employment and Labour Department spokesperson Teboho Thejane said the investigation centres on an alleged scheme dating back to 2018, when Tutani was employed by the department’s Employer Services Section.

Her duties included capturing, verifying and filing employer declaration forms on benefits files.

“The investigation alleged that prospective UIF claimants were assisted with claim forms and other documentation, despite some allegedly not meeting the requirements to receive benefits,” Thejane said.

It is further alleged that arrangements were made in some cases for bank accounts to receive proceeds from fraudulent claims.

The Hawks’ investigation alleges that Tutani and Mjili worked together to arrange and execute the scheme.

The alleged fraud came under scrutiny after discrepancies were identified during an audit by the department, according to the UIF.

The matter was subsequently referred for further investigation, culminating in the women's arrests.

“The UIF views the arrest as an important step in strengthening accountability and protecting the Fund's resources, which are intended to provide social protection to eligible workers and their families during periods of unemployment and other qualifying conditions,” Thejane said.

“The UIF is committed to working closely with law-enforcement agencies to investigate the financial misconduct that threatens the integrity of the Fund. “

UIF Commissioner Thulani Tshefuta welcomed the Hawks’ investigation and said fraud involving the Fund directly undermined resources intended for workers.

“We welcome the work of the Hawks in pursuing allegations of fraud involving UIF funds. Every rand lost through fraudulent activity is a resource that should have been available to support workers who legitimately depend on the Fund.”

Tshefuta said the UIF would continue co-operating with law-enforcement authorities as investigations into suspected financial misconduct continue.

“We will continue to co-operate with law-enforcement authorities to ensure that allegations of wrongdoing are thoroughly investigated and that those found to have acted unlawfully are held accountable,” he said.

The Fund said it had strengthened measures aimed at detecting and preventing fraudulent claims and transactions while working with law-enforcement agencies and other stakeholders to safeguard UIF money.

The UIF has also urged members of the public and employers to report suspected fraud involving benefits through the Department of Employment and Labour’s anti-fraud channels.

The case against Tutani and Mjili is expected to return to court on October 5.