Midrand couple sentenced for R600k UIF fraud

A Midrand couple that defrauded the Unemployment Insurance Fund (UIF) of more than R600,000 in Covid-19 temporary employee relief scheme (Ters) funds have been sentenced by the Johannesburg specialised commercial crime court.

Pusoloso Engineering Services company owner Refilwe Kgaje, 40, and her partner Isaac Phiri, 45, were charged with two counts of fraud after they claimed for 95 people who were not working for the company.

Kgaje was hit with a fine of R100,000 and sentenced to three years for fraud and a further 15 years imprisonment which was suspended for five years. Phiri was sentenced to 15 years for fraud.

“The department of employment and labour paid an amount of over R600,000 to a bank account which belonged to Phiri,” said National Prosecuting Authority spokesperson Phindi Mjonondwane. 

The UIF deposited money four times into Phiri’s account from August 14 to December 22 2020 amounting to R648,915.

The couple’s syndicate was stopped when one of their “employees” opened a case after their R350 Covid-19 relief grant application was rejected. The grant system found the unemployed person was registered as an employee at Pusoloso Engineering Services.

“The individual went to open a case and that is when the department of employment and labour began investigations. The accused handed themselves over to the police. 

“State advocate Vincent Ndzuke argued when the court hands down a sentence it must fit the criminal and the crime and must not underemphasise the seriousness of the offence. If too lenient sentences are imposed for serious offences, this will erode the confidence the public has in the criminal justice system,” Mjonondwane said. 

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