UIF goes after Uniondale organisation over alleged TERS fraud
It's alleged that it illegally applied and received the funds via government's COVID-19 Temporary Employer/Employee Relief Scheme (TERS).
CAPE TOWN - The Unemployment Insurance Fund has lodged a fraud complaint against a Uniondale-based organisation.
The Uniondale Integrated Empowerment Project received close to R5 million earlier this year.
But it's alleged that it illegally applied and received the funds via government's COVID-19 Temporary Employer/Employee Relief Scheme (TERS).
The UIF's David Esau said that the organisation also made workers sign an agreement over a 5% banking fee.
He said that the project claimed for TERS funds on behalf of employees even though the contract of employment was terminated in late March.
"We have approached SAPS because we are laying a criminal charge because the employer admits to having received the payment - that application should never have been made. The bank charges of 5% would never, ever have taken place because TERS is about employers applying on behalf of workers and paying the money into the bank account."
The organisation employed around 520 people.