Two women have been left unable to access their Unemployment Insurance Fund (UIF) benefits after discovering that their identity numbers were allegedly used to fraudulently claim Covid-19 relief funds.
The Special Investigating Unit (SIU) said the incidents are linked to one of 60 companies under investigation for allegedly using stolen identities to claim Covid-19 Temporary Employer/Employee Relief Scheme (TERS) funds.
SIU spokesperson Selby Makgotho said the alleged scheme involved thousands of unsuspecting South Africans whose identities were used to submit fraudulent TERS claims, resulting in the UIF losing more than R148.4m.
While the investigation focuses on recovering the stolen funds, the victims say they continue to bear the consequences, with their UIF claims blocked because of the fraudulent records linked to their identities.
Pretoria new mom and bookkeeper Paula Mokoena is among those affected.
Mokoena only discovered the alleged fraud in 2025 when she applied for UIF maternity benefits after giving birth. Her application was repeatedly rejected because her identity number was allegedly linked to fraudulent UIF records.
She later discovered that her ID had allegedly been used by KwaZulu-Natal-based Ziqoqe Construction to claim TERS benefits in 2020.
“I went to inquire at the labour department office, and that’s when I was told my profile was linked to Ziqoqe Construction. I had never heard of the company and had never worked there before. Because my employer does not offer paid maternity leave, I was left without an income for four months while caring for a newborn, forcing my family into debt.
“Although I have since returned to work, I fear the matter remains unresolved and that I could again be denied UIF benefits should I need to claim in future,” she said.
Mokoena lodged a complaint and was instructed to obtain an identity verification letter from the department of home affairs and an affidavit from the police before opening a fraud case.
After submitting the required documents, she was told the matter would be resolved within eight working days. Instead, months later, she was informed that the department of employment and labour no longer conducted such investigations and that she should report the matter to the SAPS.
“I opened a criminal case with SAPS, but the police later told me they could not investigate because it was an internal labour department matter and I was referred back to the department,” she said.
“I’ve just been sent from pillar to post. Labour [department] says SAPS must investigate, and SAPS says labour [department] must investigate. To this day, no one has helped me.”
“My husband had to support us, and we borrowed money to survive. We now have debt because I had a newborn baby and no income.”
Another victim, Ntombifuthi Mazibuko, from KwaZulu-Natal, said she only discovered the alleged fraud after unsuccessfully applying for UIF benefits 10 times. “I only noticed that my ID had been linked to a company I have never worked for in May 2026 after my UIF claim had been rejected 10 times,” she said.
She said officials informed her that she had allegedly been employed by Ziqoqe Construction since 2020 and was earning R16,200 a month. However, she does not know the firm.
“The most painful part was that their records clashed with my actual employment history. They told me I had been working for this company since 2020 and was still employed there. I believe my identity was stolen, but I don’t know when,” said Mazibuko.
She has since opened a case with the department and submitted affidavits in an attempt to clear her name.
Makgotho said the SIU proclamation empowers it to investigate cases where employers or beneficiaries were not entitled to receive TERS benefits, rather than complaints from individuals who did not receive payments they were due.
Teboho Thejane, spokesperson for the labour department, confirmed his department has seen a significant increase in complaints from affected individuals and they were making progress in recovering the stolen money. “By March 2025, the UIF had referred more than 128 Covid-19 TERS-related cases for criminal investigation,” said Thejane.
What victims need to do
Individuals who discover that their IDs have been fraudulently used should:
- Report the matter immediately at the nearest labour centre, Fraud@labour.gov.za or through the National Anti-Corruption Hotline (0800-701-701),
- Keep records of all correspondence and reference numbers,
- Follow up regularly with the labour centre where the complaint was lodged.
Sowetan
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