Nearly R6m in Covid-19 relief funds - intended for 200 workers at risk of starvation - were diverted to one man in what Asset Forfeiture Unit (AFU) investigators are calling a glaring instance of fraud and money-laundering.
The NPA's Sipho Ngwema said investigators acted quickly to secure the money that remained."We placed our focus on securing the stolen money as quickly as possible. Law enforcement agencies have come together to form an oversight structure which seeks out Covid-19-related corruption and that is how this incident was picked up," he said.
"We are investigating whether there was complicity on the part of those working at the UIF. There is a suspicion that there may have been criminal activity between UIF officials and the end recipient of the money . it is an area of focus for investigators."detail how the cash was allegedly diverted to Phohole, and then to his friends. It occurred after a system change at the UIF, which decided to pay claims directly to individuals rather than to their employers.
According to an affidavit deposed by AFU financial investigator David Mfopha, the R5.7m was meant for employees of Pretoria labour broker CSG Resources. Phohole is registered for financial relief from the UIF's Covid-19 relief scheme, and was due to receive financial relief - just not the windfall that came his way.
The firm submitted its application to the UIF and, inexplicably, the entire amount was paid into Phohole's Capitec Bank account instead of the company's Nedbank business account. By the time CSG raised the alarm and Phohole's bank account was frozen, the money had gone.
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