Three suspects are expected to appear in the Middelburg Magistrate’s Court on Monday, 18 May 2026, following their arrest in connection with an alleged COVID-19 Temporary Employee Relief Scheme (TERS) fraud involving more than R26 million.
According to a statement issued by the Directorate for Priority Crime Investigation (Hawks), the main suspect, a 48-year-old Malawian-born permanent South African resident and director of a construction company, allegedly claimed UIF TERS benefits for more than 700 “ghost employees” during 2020. Authorities allege the scheme resulted in an actual loss of R26 943 793.19 to the Unemployment Insurance Fund (UIF).
The Hawks said a joint investigation involving the Hawks’ Serious Corruption Investigation unit in Nelspruit, the UIF, Special Investigating Unit (SIU), and the National Prosecuting Authority’s Asset Forfeiture Unit found that the funds were allegedly channelled through various bank accounts linked to the suspect, his 48-year-old wife, her company, and his 39-year-old brother-in-law.
Authorities also allege the brother-in-law played a role in recruiting individuals under false promises of employment, while some of the identification details used in the claims allegedly belonged to former employees of the company. The three suspects handed themselves over to the Hawks on Sunday, 17 May 2026, and were formally processed ahead of their court appearance.