8 July 2025

The ANC Study Group on Employment and Labour welcomes and shares the positive sentiments expressed by the Minister of Employment and Labour, Hon Nomakhosazana Meth, on the successful takedown operation led by the South African Police Service (SAPS) into an extensive fraud and corruption scam involving Unemployment Insurance Fund (UIF) claims. 

The coordinated operation in Bloemfontein, Bethlehem and Gauteng resulted in the arrest of several suspects, including a 42-year-old official stationed at Labour House in Bloemfontein who it is believed is a pivotal figure in orchestrating the elaborate scheme. The arrests stem from an investigation into fraudulent UIF claims involving fictitious companies and stolen identities, with losses to the Department estimated to exceed R1,5 million.

The investigation uncovered a sophisticated scheme involving the use of stolen or voluntarily surrendered identities to create fictitious companies. These entities were then used to file false UIF claims with the Department of Labour. The illegally acquired funds were allegedly distributed among recruiters, referred to as “runners”, and in some instances, even the individuals whose identities were misused.

We commend the SAPS action and call on them to leave no stone unturned in getting to the root of the fraudulent scheme and its criminal network. We also offer our unwavering support to the Minister and SAPS for all actions aimed at rooting out corruption, and their tireless efforts to hold those who exploit government systems for their personal enrichment accountable. 

Issued by the Whip of the Study Group on Employment and Labour, Cde Mncedisi Nontsele

For enquiries, please contact
Cde Hlengiwe Hadebe
Media Liaison Officer
+27 64 147 3276