FREE STATE – Tshediso Ernest Mthembu (42) appeared before the Makwane Magistrates Court on Monday, 07 October 2024 on allegations of fraud.
Mthembu’s court appearance follows his arrest by the Hawks’ Serious Commercial Crime Investigation in Bethlehem on the same day.
It is alleged that during 2020, Mthembu, who was the director at Molake Management, lodged an application for Covid-19 Temporary Employee Relief Scheme (TERS) with the Unemployment Insurance Fund (UIF) on behalf of his purported employees and it was approved. The UIF made payments to the company to the amount of R259 739-10.
Preliminary investigation by the Special Investigating Unit uncovered that the purported employees were not employed by Molake Management. The UIF was prejudiced and suffered an amount of R259 739-10.
The matter was referred to the Hawks’ Serious Commercial Crime Investigation in Bethlehem for further investigation, resulting in the arrest of Mthembu.
The court released Mthembu on R20 000 bail. He is due to appear in the Special Commercial Crimes Court in Bethlehem on 18 November.
What is Fraud? “Fraud” is any activity that relies on deception in order to achieve a gain. Fraud becomes a crime when it is a “knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment” (Black’s Law Dictionary). In other words, if you lie in order to deprive a person or organization of their money or property, you’re committing fraud.