NGO fingered over alleged R5m TERS fraud
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Cape Town – The Department of Employment and Labour is investigating a Uniondale NGO that allegedly defrauded it of close to R5 million in Covid-19 Temporary Employer/Employee Relief Scheme (Ters) funds.
The department said it had received and responded to a complaint about an employer in Uniondale, a small agricultural town approximately 120km from George, that claimed for Ters funds on behalf of 520 employees even though their contract of employment was terminated on March 25.
The Provincial Chief Inspector (PCI), David Esau, met with the chief executive of the organisation as well as with some of the employees who confirmed that they had received payments and were waiting for proof that all the money had been paid out.
“A total amount of R4 771 837.83 was paid out to the employer in Ters monies. The department is awaiting proof that the employer paid it over to the employees as the employees at the time could not confirm all the amounts,” the department said.
It added that the Uniondale Integrated Empowerment Project (Uniep) had not only illegally applied for the funds, but had also kept part of the proceeds in the name of bank charges, which meant that the employer benefited illegally to the tune of R96 000.
The business is a non-profit organisation contracted by the Department of Public Works to perform Expanded Public Works Programme (EPWP) projects in the area ranging from classroom assistants, vegetable gardens, home-based cares, Early Childhood Development sector work, HIV and Aids awareness programmes and cleaners at government departments and institutions.
The organisation had employed approximately 520 workers.
The NGO said it would be issuing a statement yesterday, but had not done so by deadline.
The Department of Public Works did not respond to requests for comment on whether and when their contract with the NGO had ended.
Police spokesperson Christopher Spies said no criminal charges had yet been opened at Oudtshoorn or Uniondale police stations.
Responding to parliamentary questions, Labour Minister Thulas Nxesi on Monday said the Unemployment Insurance Fund (UIF) paid out R119.7 million in Ters benefits to people who were not lawfully entitled to them.
The benefits were paid out between the beginning of April and the end of October, including the controversial case of R4m going to a beneficiary with the same ID number as an employee at the UIF.
According to Nxesi’s response, R88m was paid to individuals receiving an old-age grant from the state, R30m to people with invalid identity numbers and R441 000 to beneficiaries who turned out to be deceased.
A further R129 000 in Ters benefits was paid to prisoners, and R224 677 to people below the legal employment age.
Nxesi in early September suspended five senior UIF officials, including commissioner Teboho Maruping, as fraudulent payments came to light. These are still under investigation by the auditor-general.
Nxesi, in another written reply to questions submitted by DA MP Michael Cardo, said the monthly salary bill for those suspended came to R450 551.
They will remain on suspension for a period of up to 60 days, following the submission of the auditor-general’s final report.
Cape Times