MIDDELBURG — Two suspects accused of defrauding the Unemployment Insurance Fund (UIF) of nearly R26,9 million through the COVID-19 Temporary Employee Relief Scheme (TERS) have each been granted R300 000 bail by the Middelburg Magistrate’s Court, while a third accused was released on R3 000 bail.
The accused are Fumu Mkalira Msiska and his wife, Gladness Msiska Mkhonto, both aged 48, as well as his brother-in-law, Bongani Zoran Mkhonto (39). The trio handed themselves over to the Hawks’ Serious Corruption Investigation unit in Mbombela on Sunday, 17 May 2026, before appearing in court on Monday.
According to the Directorate for Priority Crime Investigation (Hawks), Msiska, a director of construction company A and F Consulting, allegedly unlawfully benefited from the COVID-19 TERS programme in 2020 by submitting claims for more than 700 ghost employees and former workers, resulting in losses of approximately R26,9 million to the UIF.
Investigators further allege that the funds were channelled through several bank accounts linked to the accused, including accounts belonging to Msiska, his wife and her company, Khulani Quality Contribution.
Authorities allege that the money was used to acquire assets, including properties in Pretoria, Middelburg and White River.
Investigators also allege that Bongani Mkhonto acted as a runner by sourcing identification details used to facilitate fraudulent claims involving ghost employees and former workers.
The investigation was conducted jointly by the Hawks, the Special Investigating Unit (SIU), the UIF and the National Prosecuting Authority’s Asset Forfeiture Unit (AFU).
During the investigation, the AFU secured freezing orders on several bank accounts and seized five vehicles, household goods and office equipment linked to the alleged scheme.
The matter was postponed to 20 July 2026 for further investigation.
Mpumalanga Hawks Provincial Head, Major General Nico Gerber, welcomed the collaboration between law enforcement agencies involved in the investigation.
“This case is another example of how law enforcement agencies can work together to ensure that those involved in criminal activities are held accountable and that proceeds of crime are recovered,” said Gerber.
