Asset Forfeiture Unit to recover more money from EC group that defrauded UIF

The Eastern Cape Transport Tertiary Cooperative Limited took advantage of the special COVID TERS payment process to try and defraud the fund.

FILE: The state said a group called the Eastern Cape Transport Tertiary Cooperative Limited made a batch application for special TERS relief. Picture:

JOHANNESBURG - The Asset Forfeiture Unit on Wednesday said it might have to recover more money from a group that defrauded the Unemployment Insurance Fund (UIF).

The Eastern Cape Transport Tertiary Cooperative Limited took advantage of the special COVID TERS payment process to try and defraud the fund.

So far, the unit has frozen just over R22.5 million held bank accounts belonging to the body.

The state said a group called the Eastern Cape Transport Tertiary Cooperative Limited made a batch application for special TERS relief.

Hidden in the big batch were 22 applications from government employees who did not qualify for TERS as well as 22 dead people and a prisoner.

The group then made a second round of applications on behalf of 66 taxi cooperatives and NPA spokesperson Anelisa Ngcakani said just over R220 million was paid out.

“The amount to be forfeited to the state is expected to increase as the investigation unfolds.”

During an Unemployment Insurance Fund audit, the taxi body and its affiliated cooperatives could not provide requested documents.

The Grahamstown High Court last week granted the Asset Forfeiture Unit a preservation order to freeze funds in the 25 bank accounts belonging to the body.

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