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Fraud case opened against Western Cape NPO for claiming illegal Ters funds

The Department of Labour and Employment on Monday said not only did the Uniondale Integrated Empowerment Project (UNIEP) apply for the funds illegally, but it also kept part of the proceeds in the name of bank charges.

Picture: 123rf

CAPE TOWN - A case of fraud has been opened against a Uniondale organisation after it illegally received close to R5 million via government’s COVID-19 Temporary Employer/Employee Relief Scheme (Ters).

The Department of Labour and Employment on Monday said not only did the Uniondale Integrated Empowerment Project (UNIEP) apply for the funds illegally, but it also kept part of the proceeds in the name of bank charges.

That meant the employer benefitted R96,000.

Provincial chief inspector David Esau said the department received a complaint about an employer who claimed for TERS funds on behalf of 520 employees, even though their contracts were terminated in March.

“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,” Esau said in a statement.

“The department was also provided with a copy of an agreement that was concluded between the employees and the employer, which allowed for the employer to make a deduction of 5% towards banking fees although it is a requirement of the employer to apply on behalf of the employees and pay the monies in the account of the employees. The 5% amounted to an amount of approximately R96.000.00 which the employer kept in his account.”

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