MIDDELBURG – The Middelburg Magistrates’ Court in Mpumalanga province has granted bail totalling R603 000 to three people who allegedly defrauded the Unemployment Insurance Fund (UIF) of over R26.9 million through the COVID-19 Temporary Employee Relief Scheme (TERS). They are a Malawian-born businessman with permanent South African residency, Fumu Mkalira Msiska (48), his wife Gladness Mkhonto-Msiska (48), and his brother-in-law Bongani Zoran Mkhonto (38).
The trio were granted bail during their appearance yesterday, Monday, 18 May, on charges of fraud and money laundering. Bail conditions include that they appear on scheduled court dates.
Lt Col Magonseni Nkosi, provincial spokesperson for the Hawks in Mpumalanga, said Msiska and Mkhonto-Msiska were each granted bail of R300 000, while the third accused, Bongani Mkhonto, received bail of R3 000. He said the trio handed themselves over to the Hawks’ Serious Corruption Investigation Unit based in Nelspruit on Sunday, 17 May, following extensive investigations by a multidisciplinary team, including the Hawks, the Special Investigating Unit (SIU), the UIF, and the National Prosecuting Authority’s Asset Forfeiture Unit (AFU).
Nkosi said investigations revealed the funds were reportedly laundered through personal accounts and a relative’s business to purchase luxury assets. He said the fraud case involved the use of “ghost workers”. “It is alleged that in 2020, Msiska’s company, A and F Consulting, defrauded the UIF of over R26.9 million by submitting claims for roughly 700 non-existent workers.
The funds were allegedly subsequently transferred from A and F Consulting to Khulani Quality Contribution, a company linked to Msiska’s wife. Bongani Mkhonto allegedly acted as a runner by sourcing identification particulars used to facilitate fraudulent claims involving ghost employees and former workers of the company,” said Nkosi.
Nkosi said significant progress in this case resulted in the AFU securing the freezing of bank accounts and seizure of five vehicles and three properties. “The three properties in Pretoria, Middelburg, and White River were preserved, along with household goods and office equipment,” he said, adding that the matter was postponed to 20 July as part of further investigations.
