By Legal Affairs Correspondent
A KwaZulu-Natal property valued at R2.7 million has been placed under a preservation order by the Special Tribunal, marking another significant win for the Special Investigating Unit (SIU) in its pursuit of funds misappropriated through the Unemployment Insurance Fund’s Temporary Employer/Employee Relief Scheme (UIF-TERS).
The corruption-fighting agency successfully applied for the freezing order after uncovering evidence linking the immovable asset to Ziqoqe Construction CC—a company at the centre of alleged pandemic-era fraud.
How the Scheme Unfolded
According to the SIU’s findings, Ndabezinhle Luthuli, proprietor of Ziqoqe Construction, submitted multiple TERS applications on behalf of purported staff members during the national lockdown window spanning 27 March 2020 to 15 August 2020.
Investigators established that the UIF disbursed a total of R9,836,047.06 in relief benefits to the company between July 2020 and September 2024. Critically, however, none of these funds reached the 673 workers named in the applications. Luthuli neither distributed the monies to employees nor returned the amounts to the UIF, the unit reported.
Further scrutiny revealed that numerous individuals listed as employees were fictitious. Several people contacted by SIU investigators explicitly stated they had never been employed by Ziqoqe Construction, reinforcing allegations of systematic fraud.
Tracing Illicit Gains
The probe uncovered that the now-frozen property was acquired in November 2023 via transactions flagged as potentially fraudulent. This discovery suggests that proceeds from the misappropriated TERS funds may have been channelled into personal assets for Luthuli’s benefit.
As part of escalating enforcement efforts, the SIU executed coordinated search-and-seizure operations on 12 December 2025 targeting persons and entities connected to the matter.
Tribunal Restrictions and Ongoing Obligations
Following the SIU’s application, the Special Tribunal issued a directive to the deeds registry prohibiting any sale, transfer, or encumbrance of the property registered under Luthuli’s name—unless authorised by mutual written consent or a subsequent court or Tribunal order.
Importantly, the ruling stipulates that Luthuli and Ziqoqe Construction remain liable for all ongoing financial commitments tied to the asset, including municipal levies, insurance premiums, and maintenance costs, pending final resolution of the case. Costs associated with the application have been reserved for future determination.
Commitment to Accountability
In a closing statement, the SIU reaffirmed its mandate to reclaim public resources diverted through corruption and administrative misconduct. The unit emphasized its dedication to holding accountable those who exploited emergency relief mechanisms designed to sustain livelihoods and enterprises during the unprecedented challenges of the COVID-19 pandemic.
This latest preservation order underscores the SIU’s expanding portfolio of asset recovery actions and signals continued vigilance against the abuse of state support programmes.
