The High Court of South Africa (Limpopo Division) has granted the Asset Forfeiture Unit (AFU) of the National Prosecuting Authority (NPA) a preservation order to freeze bank accounts suspected to be involved in defrauding the Unemployment Insurance Fund (UIF).
In a statement issued by the NPA, the court ordered that a number of bank accounts linked to Hlamalani Dorris Mashimbye (47) and Mtititi Drop-in Centre, a non-profit organization (NPO) operating in Malamulele, be frozen, following evidence that she had fraudulently claimed funds from the UIF. "It is alleged that an amount of R 3 166 498.00 was fraudulently paid into the NPO's bank account. Mashimbye was a director of the NPO," said NPA spokesperson Ms Mashudu Malabi-Dzhangi.
Malabi-Dzhangi said that the Mtititi Drop-in Centre had successfully applied to the Covid-19 temporary relief scheme fund for an amount of R 3 166 498.00 on behalf of its employees for various periods from 27 March 2020 to 15 August 2020. These funds were to be paid over to more than 240 employees. "However, investigations revealed that Mashimbye made a fraudulent misrepresentation of facts to the UIF, in that she created a false impression that Mtititi Drop-in Centre battled through the worst effects of the national lockdown and was not able to pay the 240 employees. It was established that Mtititi Drop-in Centre had terminated contracts of the workers on 15 March 2020 prior to the announcement of the national lockdown," said Malabi-Dzhangi.
Malabi-Dzhangi said that the UIF was alerted by the employees that the funds had not reflected in their bank accounts, whereas the UIF had confirmed payment to the NPO.
"Following the discovery, the matter was reported to the Directorate of Priority Crimes Investigations (DPCI) of the SAPS, who engaged the AFU. The AFU alerted the Financial Intelligence Centre (FIC). The FIC intervened promptly in terms of the Financial Intelligence Centre Act and froze the relevant accounts. At least R555 338.92 was frozen and forms part of the preservation order," said Malabi-Dzhangi.
Malabi-Dzhangi added that they had established that Mashimbye had transferred portions of the money into other bank accounts held by herself, family members and numerous bank accounts of other individuals. "The transfer of the funds into the aforementioned accounts was done in an attempt to disguise the theft in that the reference numbers used were those of the erstwhile employees while the money was in fact paid into her accounts and those of her husband and her children," said Malabi-Dzhangi.
Mashimbye was arrested on 9 October while her husband, Masenyane William Khosa (75), was arrested on 15 October. "The DPCI is continuing with investigations. AFU applied for the preservation order to permanently forfeit the money to the state. The preservation of property order was obtained as a result of excellent co-operation between the NPA and the DPCI (Hawks). The operation is a direct product of the 'Fusion Centre' that was established, among other things, as an urgent intervention to address the unlawful activities related to COVID-19 relief funds," said Malabi-Dzhangi.
Mashimbye and Khosa have since been granted bail of R20 000 each and their case was postponed until 10 December this year for a Regional Court date.