Overview
The Special Investigating Unit (SIU) has secured a court order to seize a property in Hillcrest worth about £2.7 million. The move follows an investigation into fraudulent claims for COVID‑19 relief funds.
What Happened
- The SIU looked into claims made by Ziqoqe Construction, a company owned by Ndabezinhle Luthuli.
- Between July 2020 and September 2024 the Unemployment Insurance Fund (UIF) paid R9,836,047.06 in Temporary Employer/Employee Relief Scheme (TERS) benefits to the company.
- Luthuli allegedly collected the money on behalf of 673 workers but never paid them or returned the funds to the UIF.
How the Fraud Was Discovered
- Investigators found that many of the listed employees were “ghost employees.”
- When contacted, several people said they never worked for Ziqoqe Construction.
- The SIU concluded that the company used fake payroll records to siphon public money.
Property Seizure
- The investigation traced the illicit proceeds to a house in the Sienna Estate Scheme, Hillcrest, eThekwini Municipality, KwaZulu‑Natal.
- Purchased in November 2023 for R2,700,000, the property is believed to have been bought with the fraudulent TERS money.
- The Special Court issued an order to restrict the property’s title, preventing any sale, transfer, or mortgage without court approval or a written agreement.
Court Orders and Ongoing Responsibilities
- Luthuli and Ziqoqe Construction must continue to cover all costs linked to the property, including rates, insurance, and maintenance, while the case proceeds.
- The court has reserved a decision on who will pay the legal costs of the application.
- The SIU’s authority comes from Presidential Proclamation R.8 of 2021, which allows it to probe maladministration and fraud in UIF payments, including TERS claims.
What This Means for Teens and the Community
- The case shows how relief funds meant to help workers during the pandemic can be abused.
- Holding individuals accountable helps protect public money and ensures that future aid reaches those who truly need it.
- Young people can learn the importance of transparency and the consequences of fraudulent actions.
Conclusion
The SIU’s successful move to seize the Hillcrest property highlights its commitment to recovering stolen public funds and deterring misuse of emergency relief programs. As the legal process continues, the outcome will reinforce the message that fraud—especially during crises—will not be tolerated.
