The Looted Dead: Officials, Soldiers, and Even the Dead Scored by Covid-19 Unemployment Relief

Andy Mothibi, Chief Defender of the Special Investigation Unit (SIU).

• AGSA and SIU found that more than 6,000 government officials claimed more than R41 million from the UIF TERS Covid-19 benefit.
• They also denounced the dead, soldiers and prisoners.
• The SIU also found that the FIU contravened the PFMA by appointing five service providers for an awareness campaign worth R6.1 million.

Just over 6,000 government officials looted more than 41 million rand of the money that was supposed to provide aid to the unemployed during the Covid-19 pandemic.

In addition, the soldiers, inmates and those who faithfully left all claimed the Temporary Relief Plan for Employers / Employees (TERS) of the FIU for Covid-19 benefits, found the Auditor General (AGSA) and the Investigation Unit Special (SIU).

The two anti-corruption entities updated the Standing Committee on Public Accounts (Scopa) on Wednesday morning on their ongoing investigations into Covid-19-related corruption at the FIU.

The SIU found that R327 638 was paid through 78 exceptions to the staff members of the South African National Defense Force (SANDF).

A total of 59 SANDF members associated with 55 bank accounts were identified. Additionally, three bank accounts have multiple beneficiaries and four SANDF members have multiple bank accounts.

Seven inmates from the Department of Correctional Services were identified as claiming a total of R40 657.93 from the relief fund.

The “deceased” persons were paid TERS benefits totaling R441 144.34, representing 68 deceased beneficiaries using 72 bank accounts. Additionally, two bank accounts showed multiple beneficiaries and seven deceased beneficiaries had multiple bank accounts.

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A total of 6,140 government officials were identified as having claimed a total of R41,009,737.70 from the relief fund. They used 3,959 bank accounts. Another 55 beneficiaries without bank accounts were identified.

The SIU was alerted on October 22 that the Hawks arrested eleven people in connection with the fraud perpetrated against the FIU.

In addition, 70 criminal cases were registered with the police and are currently being investigated by the Serious Commercial Crimes Unit. No arrests have been made in connection with these matters. The total value of the 70 cases amounted to R 1 490 436.15.

The SIU is working with other law enforcement agencies at the Fusion Center to address the issues.

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The SIU is not done with the FIU looters. It is in the process of requesting an extension of the current Covid-19 proclamation to investigate all TERS matters with an estimated value of R985 million.

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SIU chief Andy Mothibi said investigations were ongoing.

“There is a clear indication in the FIU that there was a failure of people, processes and systems,” Mothibi said.

He said this needed to be rectified.

In addition to the “double dip” with the Covid-19 benefit, the SIU also investigated AGSA’s findings that suggested that proper supply chain management processes were not followed to designate at least five companies for an awareness campaign. on the UIF TERS Covid-19 benefit. and that the appointments were made based on a motivation for unique service providers.

The SIU began its investigation into the matter on August 24. The value of the five contracts was R6.1 million.

Service providers were required to run ad campaigns to raise awareness of the FIU Covid-19 TERS, three ads per day, for 45 seconds, for four weeks on related radio and television channels.

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The FIU’s bid award committee requested a deviation from normal procurement processes to appoint service providers. All service providers were designated in a diversion process.

“The SIU is conducting a large-scale investigation to confirm or refute allegations of corruption, mismanagement and / or to determine if there were undue benefits / gratuities paid to FIU officials to influence the SCM process,” it reads in the presentation of the SIU. to Scopa.

So far they have made the following findings:

• The five service providers were appointed without following the proper SCM process.
• Where relevant, practice note n. 8 of 2007/8 requires that for all purchases of goods and services that do not exceed R500,000, at least three quotes must be obtained.
• This was not followed because it was argued that the five companies were sole service providers.
• These appointments did not comply with the Constitution and the Public Finance Management Law (PFMA).
• The FIU acted illicitly because there were other commercial radio stations registered with ICASA in those provinces. In addition, the SABC was able to convey the same message in 11 languages.
• The communication and marketing department misrepresented before the bid award committee that the service providers were single source providers and the misrepresentation caused real harm to the FIU.
• An SCM official did not fulfill his duties when he allowed the marketing and communication department to predetermine the names of service providers in the specifications. This non-compliance generated irregular expenses for the FIU.
• The recommendations, approvals, appointments and payments of these service providers contravene the Law of Public Finance Management.

The SIU is finalizing testing against 14 officials and criminal referrals will be determined after a review of emails, personnel files and financial information. The SIU will also consider the possibility of initiating civil proceedings.

The committee thanked AGSA and the SIU for their work and expressed concern about corruption in the FIU.

“While SANDF was busy skimping and dressing our people, some complained,” said ANC deputy Bheki Hadebe. “What went wrong with our country?”

Scopa will visit the FIU offices in Pretoria on Friday.