Car hire company director used ‘ghost employees to claim R2.8m’ in Covid-19 relief then bought Audi Q8

A car hire company director allegedly siphoned R2.8m from the Covid-19 TERs relief scheme using captured customers’ personal details to create “ghost employees” and then went on to purchase a luxury Audi Q8. 

Siphamandla Gebuza, 34, is set to appear in the specialised commercial crimes court in Bellville, Cape Town, on July 3.

The fund was meant to assist employees unable to earn an income or whose income was reduced during the national Covid-19 lockdown. However, it also attracted wide-scale fraud with the Special Investigating Unit (SIU) confirming last month that it had signed acknowledgments of debt with companies to pay back about R100m “unduly claimed” from the scheme.

A probe into Gebuza’s affairs was launched after the department of employment & labour discovered that his company was not operating from the physical address he provided in Langa.

Gebuza, director of Car Rental Africa, was arrested on March 8 by the Hawks serious corruption investigation team for allegedly claiming TERs funding on behalf of 124 employees who were “not and never had been” in his employ.

According to the charge sheet, the department of employment & labour paid him more than R2.8m in four transactions between April 30 2020 and January 1 2021.

Gebuza faces 124 counts of fraud.

“The individuals whose names were used by Gebuza know him and Car Rental Africa as they hired motor vehicles from him,” according to the charge sheet.

“No TERs benefits were received by the 124 individuals whose names were used by Gebuza to claim TERs benefits.”

Gebuza allegedly spent some of the money received from the department of employment & labour on two vehicles — one a second-hand Audi Q8 from WeBuyCars. “He kept the TERs funds for himself and used them for his own benefit,” the charge sheet reads.

He allegedly made two cash payments for the vehicles.

Gebuza has changed lawyers twice since his arrest. He last appeared in court on June 5.

The case was postponed to allow his new lawyer to peruse the court file and consult with him.

“To date, the SIU has recovered cash to the value of about R71.4m since it commenced with investigations in June 2021,” Kganyago said on May 23 on efforts to claw back irregular TERs payments.

“The figure includes R9,987,728 that was paid directly to the UIF (Unemployment Insurance Fund) by companies. Some of the companies that paid money directly to UIF includes SAA Technical, which paid back R8,830,044 and RH Matjhabeng Hospital, a private hospital in Free State, among others. The hospital paid back R488,458.”