The Special Investigating Unit (SIU) secured an interim preservation order from the Special Tribunal freezing a 3,5431-hectare Ambleton Farm in Pietermaritzburg, KwaZulu-Natal.
The farm is linked to more than R13 million unlawfully obtained from Temporary Employer/Employee Relief Scheme (TERS) funds.
TERS was introduced to support businesses and workers affected by COVID-19 lockdowns.
The order prohibits Nhlanipho Mngomezulu and entities linked to him, and anyone with knowledge of it, from selling, leasing, transferring, disposing of, or otherwise dealing with the farm.
It takes immediate effect and remains in force pending the final determination of the matter and/or further civil proceedings instituted by the SIU.
The order is as a result of an SIU investigation under Proclamation No. R8 of 2021, which uncovered a syndicate that defrauded the Unemployment Insurance Fund (UIF) and the Department of Employment and Labour of over R148 million through fraudulent TERS claims.
The SIU investigation also revealed that Mngomezulu’s company, Lubelo Hlomuka Holdings, trading as SA Scrum Assembly, unlawfully received approximately R15.9 million through the scheme.
Flatmont Enterprise (Pty) Ltd was among the companies that benefited, allegedly receiving more than R13 million with Mngomezulu’s assistance.
The investigation found that the syndicate submitted fraudulent claims using stolen personal details of fictitious, or “ghost” employees by diverting funds from their intended beneficiaries.
The evidence shows that Mngomezulu was at the centre of the TERS fraud and recruited other participants to submit fraudulent claims in exchange for a share of the proceeds.
The SIU investigation also revealed that Mngomezulu’s company, Lubelo Hlomuka Holdings, trading as SA Scrum Assembly, unlawfully received approximately R15.9 million through the scheme.
Flatmont Enterprise (Pty) Ltd was among the companies that benefited, allegedly receiving more than R13 million with Mngomezulu’s assistance.
They fraudulently applied for TERS benefits for 659 purported Flatmont Enterprise employees and 85 purported employees of her other company, Ubuhle be Africa, despite the companies having only 45 and 12 legitimate employees, respectively.
The SIU detailed investigations uncovering amounts paid to suspects since January 2022.
The Directorate for Priority Crime Investigation, commonly known as the Hawks, has ever since arrested suspects, for 40 counts of theft, 40 counts of fraud, money laundering, and contravening Section 5 of the Prevention of Organised Crime Act (POCA), Act 121 of 1998.
They are expected to return to court on 3 December 2026 after their release on R10,000 bail.