Authorities say the accused manipulated the UIF system using false employment claims to trigger fraudulent payouts.
An alleged mastermind behind an Unemployment Insurance Fund (UIF) fraud syndicate and nine other suspects have been granted R1 500 bail each in the Bloemfontein Magistrate’s Court.
Bethuel Mahlatsi, 44; Kgethisi Molaba, 28; Monyoko Mofokeng, 33; Thakane Maitse, 29; Tsietsi Mokoena, 33; Thami Sothole, 29; Omphile Mokoena, 29; Mokgethi Mofokeng, 32; Tebello Mbele, 32; and Lehlohonolo Motloung appeared in the Free State court on Friday and face charges of fraud.
‘Significant blow to organised crime’
In what police describe as a “significant blow to organised crime”, nine of the suspects were arrested during a multidisciplinary “takedown operation” in Bethlehem on Wednesday, 18 March.
Mahlatsi, a current employee of the Department of Labour and the alleged mastermind, was arrested on Friday in Bloemfontein.
“It has been noted that Mr Mahlatsi currently has another pending fraud case from late 2025,” Free State police spokesperson Sergeant Mahlomola Kareli said.
Kareli said the intelligence-led operation was carried out by the Free State Provincial Organised Crime Investigations unit, crime intelligence and the Phuthaditjhaba Tactical Response Team.
Scheme exploited UIF system
“The investigation revealed a sophisticated scheme where agents and complicit officials allegedly manipulated the UIF claim system for personal gain,” the spokesperson said.
“The group is accused of submitting fictitious information, claiming to have worked for specific companies to trigger payouts.”
He said they defrauded the Department of Labour more than R300 000.
During their initial appearance, the state did not oppose bail.
The case, Kareli said, has been postponed to 18 May for further bail information and investigation.
The acting Free State provincial commissioner, Major General Apaphia Modise, said: “As the police, we remain committed to rooting out corruption within government departments.
“This investigation is ongoing, and more arrests are expected as the net closes in on the remaining members of the syndicate.”
Mahlatsi’s previous fraud case
In July 2025, police arrested Mahlatsi in connection with another UIF fraud and corruption scheme that cost the department a financial loss of over R1.5 million.
He and 15 other suspects were allegedly part of a syndicate that recruited people and used their personal information to submit fraudulent claims to the department, using legitimate company names.
The companies were reportedly unaware of these activities.
“The fraudulently obtained funds were then allegedly shared among recruiters, the implicated government official, and, in some cases, the identity holders themselves,” National Prosecuting Authority spokesperson Mojalefa Senokoatsane said at the time.
Mahlatsi, who faces charges of fraud, corruption and money laundering, was released on R10 000 bail.
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