The looting dead: Officials, soldiers and even the dead scored from Covid-19 unemployment relief

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

Just more than 6 000 government officials looted more than R41 million from the money supposed to provide relief to unemployed people during the Covid-19 pandemic.

Furthermore, soldiers, inmates and the faithfully departed all claimed from the UIF's Temporary Employer/Employee Relief Scheme (TERS) for Covid-19 benefits, the Auditor-General (AGSA) and Special Investigating Unit (SIU) found.

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

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

A total of 59 SANDF members associated with 55 bank accounts were identified. Furthermore, 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.

"Deceased" individuals were paid TERS benefits totalling R441 144.34, which represented 68 deceased beneficiaries making use of 72 bank accounts. Furthermore, two bank accounts depicted multiple beneficiaries and seven deceased beneficiaries had multiple bank accounts.

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. A further 55 beneficiaries were identified with no bank accounts.

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

Furthermore, 70 criminal cases were registered with the police and are currently under investigation by the Serious Commercial Crime Unit. No arrests have been made in relation to these matters. The total value of all 70 cases amounted to R 1 490 436,15.

The SIU is working with other law enforcement agencies at the Fusion Centre to deal with the matters.

The SIU isn't done with the UIF-looters. It is in the process of applying for an extension of the current Covid-19 proclamation to investigate all TERS matters with an estimated value of R985 million.

Investigations

SIU head Andy Mothibi said the investigations were ongoing.

"There is a clear indication at the UIF that there was a failure of people, process and systems," Mothibi said.

He said this needed to be rectified.

Apart from the "double-dipping" with the Covid-19 benefit, the SIU also investigated findings by AGSA that suggested no proper supply chain management processes were followed to appoint at least five companies for an awareness campaign about the UIF Covid-19 TERS benefit and that the appointments were made based on a motivation for sole service providers.

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

The service providers were required to conduct advertising campaigns to create awareness about the UIF Covid-19 TERS, three spots per day, for 45 seconds, for four weeks on radio channels and related television channels.

The UIF's bid adjudication committee requested a deviation from the normal procurement processes to appoint the service providers. All the service providers were appointed on a deviation process.

"The SIU is conducting a full-scale investigation in order to confirm and or refute corruption, maladministration allegations, and or to determine if there were any undue benefits/gratifications paid to the UIF officials to influence the SCM process," read the SIU's presentation to Scopa.

They have thus far made the following findings:

• The five service providers were appointed without following the proper SCM process.
• Where relevant, practice note no 8 of 2007/8 requires that for all procurement of goods and services not exceeding R500 000, at least three quotations must be obtained.
• This was not followed as it was motivated that the five companies were sole service providers.
• These appointments were not in compliance with the Constitution and the Public Finance Management Act (PFMA).
• The UIF acted unlawfully because there were other commercial radio stations registered with ICASA in those provinces. Furthermore, the SABC was able to deliver the same message through 11 languages.
• The communication and marketing department misrepresented to the bid adjudication committee that the service providers were sole-source providers and the misrepresentation caused the UIF actual prejudice.
• One SCM official failed in her duties when she allowed the marketing and communication department to predetermine the names of the service providers on the specifications. This failure resulted in irregular expenditure for the UIF.
• The recommendations, approval, appointments and payments of these service providers were in contravention of the Public Finance Management Act.

The SIU is finalising the evidence against 14 officials, and criminal referrals are to be determined after a review of emails, personnel files and financial information. The SIU will also consider instituting civil proceedings.

The committee thanked AGSA and the SIU for their work and expressed their concern about corruption at the UIF.

"While the SANDF were busy skopping and donnering our people, some were claiming," said ANC MP Bheki Hadebe. "What went wrong with our country?"

Scopa will visit the UIF offices in Pretoria on Friday.