The Special Investigating Unit (SIU) welcomes the arrest and prosecution of suspects in Mpumalanga, the conviction and sentencing of a businessman in the Free State, and the preservation of assets obtained through the proceeds of crime. Together, these outcomes represent more than R27 million in UIF Temporary Employer/Employee Relief Scheme (TERS) funds that were siphoned from the state and are now preserved or recovered for the benefit of South Africans.
Mpumalanga Case: Ghost Employees, R26.9 Million Siphoned, and Preserved Assets
On Monday, 18 May 2026, Mr Fumu Mkalira Msiska (48), his wife, Gladness Mkhonto Msiska (48), and his brother-in-law, Bongani Zoran Mkhonto (39), appeared before the Middelburg Magistrate’s Court on charges of fraud involving ghost employees in the UIF-TERS scheme.
The court granted bail of R300 000 each to Mr and Mrs Msiska, while Mr Mkhonto was granted bail of R3 000. The High Court of South Africa, Mpumalanga Division, issued a preservation order against assets suspected to be proceeds of crime, including three properties in Pretoria, Middelburg, and White River, which were preserved, long with household goods, office equipment and bank accounts, ensuring that unlawfully acquired wealth is safeguarded pending forfeiture. In addition, the following vehicles were seized:
- 2019, Land Rover, Range Rover L560,
- A 2011 Toyota Fortuner
- A 2005 Mercedes-Benz, C180 Kompressor
- A 2015 BMW X6
- A 2019 Mercedes-Benz V250 D,
- 2010 Caterpillar, backhoe loader
During the investigation, the NPA’s Asset Forfeiture Unit secured the freezing of bank accounts and seized five vehicles. In addition, three properties located in Pretoria, Middelburg, and White River were preserved, along with household goods and office equipment.
The SIU investigation revealed that the accused siphoned R26 943 793.19 from the UIF-TERS scheme by fabricating employees and submitting fraudulent claims. These ghost employees were used to channel public funds into private hands, depriving genuine workers of relief during the COVID-19 pandemic.
The claim was for six months as follows:
April 2020: 724 ghost employees
May 2020: 587 ghost employees
June 2020: 743 ghost employees
July 2020: 763 ghost employees
August 2020: 767 ghost employees
September 2020: 773 ghost employees
It is further alleged that the funds were subsequently transferred from A and F Consulting to Khulani Quality Contribution, a company linked to Msiska’s wife. The brother-in-law, Mkhonto, allegedly acted as a runner by sourcing identification particulars used to facilitate fraudulent claims involving ghost employees and former workers of the company.
When the SIU and the Directorate for Priority Crime Investigation (HAWKS) interviewed some of the people from the North West and Mpumalanga whose details were used for these claims, and their details were obtained through scams that promised special grants, they were receiving free driving licenses or the details allegedly stolen from the local Sheriff’s office.
The consequence of people’s stolen details has a real-life impact. In the year 2022, the Hawks in Kwa-Zulu Natal received a complaint from a member of the public who alleged that she was struggling to receive her maternity benefit from the UIF because she was informed that a company named Consulting Engineers had claimed UIF-TERS benefit on her behalf. She claimed that her information was used fraudulently and requested a police investigation into the matter. The matter was subsequently referred to the Hawks in Mpumalanga province, who then requested the assistance of the SIU in investigating the matter, as the SIU had an existing proclamation that covers this matter.
Free State Case: Conviction and paying back R201 812
Meanwhile, in the Free State, the Heilbron Magistrates’ Court convicted and sentenced Mr Ente Thibello Sekhoto (51) and his company, Batlokoa Circle 12 Plaster Services (Pty) Ltd, for fraud and money laundering related to UIF-TERS benefits.
SIU’s investigation found that Sekhoto fraudulently applied for relief funds on behalf of individuals who were not employed by his company, cheating the Unemployment Insurance Fund into paying R201 812.36 into his company’s bank account. The Department of Employment and Labour suffered direct financial loss.
In line with the SIU Act, the SIU referred evidence pointing to criminal conduct to the NPA for further action. The NPA roped in the Hawks Serious Commercial Crime Investigation unit, which arrested Sekhoto. The court ordered Sekhoto and his company to jointly pay the National Department of Employment and Labour in the amount of R201 812.36, payable within four years.
These developments highlight the SIU’s mandate under Proclamation R08 of 2021 to investigate maladministration and corruption in the UIF-TERS scheme, and to ensure that perpetrators face justice while unlawfully acquired assets are safeguarded.
The SIU investigation uncovered the fraudulent applications, and in line with the SIU Act, the SIU referred evidence of criminal conduct to the National Prosecuting Authority for further action. The conviction and preservation order demonstrate the effectiveness of SIU investigations in ensuring accountability and restitution of stolen public funds.
The SIU continues to work closely with law enforcement partners, including the Hawks and the National Prosecuting Authority, to ensure that perpetrators of corruption face the full might of the law. These outcomes reaffirm the commitment of law enforcement agencies to protecting public funds and restoring trust in institutions.
The SIU is also authorised to initiate civil proceedings in the High Court or a Special Tribunal in its name to correct any wrongdoing uncovered during its investigation and to recover financial losses suffered by the State, including funds paid for services not rendered.
Enquiries:
Selby Makgotho
Spokesperson: Special Investigating Unit
Cell: 083 718 6128
SIUMedia@siu.org.za
ISSUED BY THE SPECIAL INVESTIGATING UNIT