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Reading: Minister Meth hails arrests in R1.5m UIF fraud bust
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African News Herald > Blog > Crime > Minister Meth hails arrests in R1.5m UIF fraud bust
Crime

Minister Meth hails arrests in R1.5m UIF fraud bust

ANH Team
Last updated: July 5, 2025 10:57 pm
ANH Team
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Labour minister applauds police for arrests in UIF fraud scheme involving fake companies and stolen identities

Employment and Labour Minister Nomakhosazana Meth has commended the arrest of a Labour department manager and several others in a significant crackdown on Unemployment Insurance Fund (UIF) fraud in the Free State and Gauteng.

The authorities uncovered a syndicate using fake companies and stolen identities to defraud the fund.

Police in the Free State conducted a takedown operation in Bloemfontein, Bethlehem, and Gauteng following a detailed Crime Intelligence investigation into fraud and corruption at the Department of Labour.

Syndicate to defraud UIF

Free State police spokesperson Brigadier Motantsi Makhele stated that the operation started at Labour House in the Bloemfontein CBD, where one person of interest was apprehended.

This arrest followed months of meticulous research into a sophisticated fraud scheme involving false claims for funds from the UIF.

“It is alleged that the masterminds behind this operation recruited unsuspecting individuals and used their personal information to register fictitious companies, which then submitted false claims to the Department of Labour,” Makhele explained.

“The fraudulently obtained funds would then be shared among the recruiter (or runner), and in some cases, even the person whose identity was used.”

Estimated R1.5 million lost

The department estimates that they may have lost over R1.5 million in this fraudulent scheme.

A 42-year-old office manager at Labour House in Bloemfontein was arrested, marking a significant breakthrough in Thursday’s operation. He is believed to have played a crucial role in facilitating the illegal operation that spanned across Gauteng and the Free State.

See also  JMPD arrests four men for murder in Yeoville, Johannesburg

Minister Meth condemned the actions, expressing the department’s shock at the betrayal of public trust by individuals seeking personal enrichment through criminal activities.

Internal investigations and disciplinary action

The minister confirmed that the department is fully cooperating with the police and other law enforcement agencies. Internal investigations and disciplinary action against implicated employees will be launched.

“We commend Saps [South African Police Service] for its professionalism, and we will leave no stone unturned in dealing with fraud and corruption in the department, its funds, and entities,” Meth stated.

Lieutenant General Baile Motswenyane, the Saps’ Free State provincial commissioner, praised the team for their dedication and precise execution of the operation.

Motswenyane emphasized the importance of holding accountable those who exploit government systems for personal gain.

The suspects are set to appear in the Bloemfontein Magistrate’s Court on Monday, with ongoing investigations and more arrests expected.

“Let this serve as a stern warning: unethical behavior will not be tolerated. We will ensure transparency and accountability in our operations. Crime will not go unpunished,” Meth concluded.

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