Johannesburg - A businessman, Treasure Moremi, 35, was sentenced to 10 years direct imprisonment on Friday for unemployment insurance fund fraud, also known as Covid-19 Temporary Relief Scheme fund fraud.
The Hawks said a serious corruption investigation revealed that from April to June 2020, a company known as Denmag Trading, belonging to Moremi, applied for relief funds for its employees.
“The application was processed, and a sum of just over R10 million was disbursed to the company’s account. Further investigation revealed that the company employs about 29 people, but the application was for over 530 employees, which amounts to over 500 ghost employees,” Hawks spokesperson Captain Lloyd Ramovha said.
Ramovha said when the money was paid, it was established that it was transferred and laundered through several entities and personal accounts.
“It was the State’s case that Moremi, as a director, failed to comply with the memorandum of agreement and unlawfully benefited from the Covid-19 Ters for personal gain. The loot was used to buy a truck, a minibus and a piece of land. Both vehicles were confiscated as they were deemed to be proceeds of crime and have been forfeited to the State,” Ramovha said.
According to the Hawks, Denmag Trading, represented by Levy Moremi, was fined R600 000 by the Pretoria Magistrate’s Court, while a 10-year jail term was handed down to Moremi.
The Gauteng Provincial Head of the Hawks, Major-General Ebrahim Kadwa, lauded the investigation and prosecution team.
“It is regrettable that people would see an opportunity to enrich themselves with public funds. The country was reeling from a pandemic at the time. We hope the sentence serves to deter would-be fraudsters, and the Hawks will stop at nothing to ensure that justice is served,” he said.
The Star