The Citizen (Gauteng)

TERS fraud: man’s accounts frozen

- Citizen reporter

The High Court in Pretoria has issued an order in favour of the Asset Forfeiture Unit (AFU) of the National Prosecutin­g Authority (NPA) to freeze bank accounts worth R111 million connected to Hammanskra­al businessma­n Thabo Abel Simbini and his business, Impossible Services (Pty) Ltd.

Simbini appeared briefly in the Pretoria Specialise­d Commercial Crimes Court on allegation­s of bribery in connection with the department of employment and labour’s UIF Covid-19 Temporary Employee/Employer Relief Scheme (Ters), the NPA said in a statement.

“In October 2020, Impossible Services claimed to have terminated 6 647 employees from their employment.

However, the company had only one employee, Simbini, prior to the declaratio­ns made to the UIF. Based on these abnormalit­ies, it appears that Impossible Services did not have any employees other than Simbini, who is a director.

“Impossible Services was paid R111 003 088.73 into its bank account based on the fraudulent claim,”the statement said.

“Subsequent investigat­ions revealed that the employees were not employed by Impossible Services and the company was fraudulent­ly using people’s identity documents to claim for normal UIF and the Ters benefit without their knowledge.

“The R111 million was therefore paid fraudulent­ly to the company and Simbini and the company possibly committed fraud, theft and/or money laundering.

“On 13 November, 2020, the Financial Intelligen­ce Centre issued directives in terms of the Financial Intelligen­ce Centre Act to the bank to ‘freeze’ the accounts or not to proceed with any transactio­ns on the implicated accounts.

“On Friday, 13 November, Simbini was arrested by members of the Directorat­e for Priority Crimes Investigat­ion, popularly know as the Hawks, during an undercover operation, when the accused was caught red-handed bribing an official from the department of employment and labour.”

The Hawks’ investigat­ion into Simbini’s claims continued and the Hawks and the NPA are part of the Fusion Centre which comprises all law enforcemen­t agencies.

“The Fusion Centre is a platform for law-enforcemen­t collaborat­ion to prevent, detect early, intelligen­ce-led investigat­ions, prosecute and recover assets relating to corruption or related activities in respect of Covid-19 relief,” the NPA statement added.

“The rapid response by law enforcemen­t agencies under the Fusion Centre with regards to these Covid 19 relief cases is commendabl­e,” said AFU Head Ouma Rabaji-Rasethaba.

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