- The Hawks have backtracked on a statement saying DA councillor Nora Grose had allegedly misappropriated TERS funding.
- This was after the court appearance of Ruben Swartz who is charged with fraudulently claiming R297 000 from the UIF's relief fund.
- The Hawks said Grose's money laundering charge relates to food parcel money diverted through a church.
The Hawks have backtracked on a statement saying DA councillor Nora Grose had allegedly misappropriated TERS funding.
This after the court appearance of Ruben Swartz who is charged with fraudulently claiming R297 000 from the UIF's relief fund.
The Hawks said Grose's money laundering charge relates to food parcel money diverted through a church.
Swartz, a chairperson of the SA Residents Civic Organisation (Sarco) appeared in the Commercial Crimes Court in Bellville on Friday on charges of fraud and money laundering.
"This comes after his arrest by the Hawks Serious Corruption Investigation team in December 2020 and his later released on R10 000 bail," said Hawks spokesperson Zinzi Hani.
"It is alleged that Swartz fraudulently claimed money from [the Temporary Employee/Employer Relief Scheme] from the [Unemployment Insurance Fund] valued at R 297 800.00 and used it for personal gain," said Hani.
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The TERS fund was introduced during the Covid-19 pandemic to help people whose companies could not operate during the lockdown.
Hani said the investigation further revealed that Swartz received up to R170 000 from the City’s humanitarian fund.
The money was for food parcels in Atlantis, a suburb north of Cape Town. The Hawks allege the money was channeled to a church in Table View with ties to Grose.
"At this stage nothing links Councillor Grose to the TERS funding as reported before," Hani said.
The matter against Swartz is postponed to the 23 June for further particulars.
In November Wes Kus Nuus reported on three women who found out they had been registered for TERS at Sarco, and the money had been claimed, although they never worked there. The publication tracked down 36 supposed employees.
The church involved in Grose's matter is understood to be Life Changers church in Table View.
According to an email Grose sent to officials, the money earmarked for food was sent through Sarco because the intended recipient's tax certificate was out of date, and they would not be able to get it up to date in time for the donation.
To avoid losing the donation, it was funneled through Sarco, and to the church.
Grose and Swartz did not want to comment when contacted by News24, other than Swartz correcting the previously reported name of the organisation.
In response to questions from News24, Life Changers church said that it is co-operating with the Hawks, and referred questions to the Hawks on the investigation into Grose.
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"We have at all times, and still are, fully co-operating with the Hawks investigating team to assist in clarifying our role in the distribution of food in pursuance to the facilitation of the Covid Relief Fund," said Mark van Pletzen.
"What I can confirm is that the West Coast Covid Relief Fund was established during lockdown to include facilitation of food distribution to those in need in the West Coast of Cape Town.
"Funds were donated and given by different people and organisations to facilitate this humanitarian effort to supply food to communities in need.
"Every cent that was given to us for this purpose was used to purchase food and materials and was distributed to those in need who made an application for assistance during this period.
"To this end we have provided the Hawks Investigative Unit with all our recorded Books of Accounts and they are satisfied that in no way whatsoever were any funds misappropriated by us.
"Our desire and goal was at all times, and still is, to love and support those in dire need during this devastating time and we believe that through our efforts we fulfilled our commitment in this regard."
The City of Cape Town said in a statement on Thursday that it does not consider it a criminal matter.