Couple Found Guilty of Defrauding Covid-19 Relief Funds

The Unemployment Insurance Fund (UIF) has announced that a South African couple has been found guilty of defrauding the Covid-19 Temporary Employer-Employee Relief Scheme (Covid-19 TERS). Refilwe Kgaje and Isaac Phiri, through their company Pusoloso Engineering Services, submitted applications for Covid-19 relief funds for 95 non-existent employees between 2020 and 2021. The UIF paid out R600,000 to Phiri’s bank account.

Conviction and Sentencing

Kgaje and Phiri were investigated by the UIF and law enforcement agencies, leading to their arrest and subsequent conviction. The Johannesburg Specialised Commercial Crimes Court sentenced Kgaje to a three-year sentence and an additional 15-year sentence for fraud, while Phiri faced a 15-year sentence for the same offense.

UIF’s Commitment to Combating Fraud

UIF Commissioner Teboho Maruping has expressed satisfaction with the verdict and praised the work of the UIF investigators, HAWKS, and the National Prosecuting Authority (NPA) in tracking down Covid-19 TERS fraudsters. The UIF has vowed to continue pursuing fraud cases with their partners until every perpetrator has been dealt with, emphasizing the importance of harsher sentences to send a clear message of no tolerance for this type of crime.

Stern Warning to Others

The convictions serve as a stern warning to others contemplating similar acts, as the UIF exhibits zero tolerance for such fraud. So far, at least 12 individuals have been convicted and sentenced to either direct imprisonment or suspended sentences for theft, fraud, and money laundering connected to Covid-19 TERS. The successful prosecution and sentencing of Kgaje and Phiri demonstrate the UIF’s unwavering dedication to the cause and their ongoing collaboration with relevant authorities.

Need for Vigilance and Cooperation

Ultimately, this case serves as a reminder of the need for vigilance and cooperation in addressing fraudulent activities surrounding Covid-19 relief funds. As the UIF and other agencies work together to protect the interests of workers and prevent the misappropriation of funds, it is crucial to maintain a proactive approach and ensure that those responsible for such crimes face the full force of the law.