Hillcrest property linked to alleged R9.8m UIF TERS fraud frozen
The SIU welcomed the preservation order granted by the Special Tribunal, which prevents the property from being sold or transferred.
A Hillcrest property valued at R2.7 million has been frozen by the Special Tribunal after it was linked to the alleged fraudulent abuse of the Unemployment Insurance Fund’s (UIF) Temporary Employer/Employee Relief Scheme (TERS) during the Covid-19 pandemic.
The Special Investigating Unit (SIU) said the property is connected to Ziqoqe Construction CC and forms part of an ongoing investigation into alleged fraud involving UIF TERS payments worth more than R9.8 million.
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In a statement, the SIU welcomed the preservation order granted by the Special Tribunal, which prevents the property from being sold, transferred or encumbered while the matter is under investigation.
According to the SIU, its investigation found that the owner of Ziqoqe Construction, Ndabezinhle Luthuli, submitted TERS applications on behalf of alleged employees during the Covid-19 lockdown period between March 27, 2020, and August 15, 2020.
The UIF subsequently paid R9 836 047.06 in TERS benefits to the company between July 21, 2020, and September 30, 2024.
However, investigators allege that none of the claimed employees received the funds.
“The SIU investigation found that Luthuli did not pay any of the alleged 673 employees and failed to refund UIF,” the unit said.
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Investigators further found that many of the listed employees were “ghost employees”, while several people contacted during the investigation denied ever working for the company.
The SIU said a property in the Sienna Estate Scheme in Hillcrest, eThekwini, was purchased in November 2023 through what it described as purported fraudulent transactions.
Investigators believe the property, valued at R2.7 million, may have been acquired using proceeds derived from the alleged unlawful UIF claims.
As part of the probe, the SIU conducted search-and-seizure operations in December 2025 involving associated individuals and entities.
The Special Tribunal has now ordered the Deeds Registry to place restrictions on the property registered in Luthuli’s name.
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The order means the property cannot be sold, transferred or used as security without either a written agreement between the parties or further authorisation from the court or Tribunal.
The Tribunal also ruled that Luthuli and Ziqoqe Construction remain responsible for all costs associated with the property, including levies and insurance, while the case is pending.
The SIU said the investigation stems from Presidential Proclamation R.8 of 2021, which authorised investigations into allegations of fraud and maladministration involving UIF payments, including TERS claims made during the pandemic.
“The SIU remains committed to recovering public funds lost through corruption and maladministration, and to ensuring accountability for those who sought to exploit relief measures intended to support businesses and workers during the COVID-19 pandemic,” the unit said.
