Police anticipate arresting as many as 20 suspects in connection with fraudulent UIF payouts.
Free State police on Thursday arrested a Bloemfontein Labour House office manager who is believed to be a key role player in facilitating an operation involving fraudulent Unemployment Insurance Fund (UIF) payments.
The 42-year-old’s arrest follows an intense investigation by Crime Intelligence into allegations of fraud and corruption within the Department of Labour.
It forms part of a takedown operation executed in Bloemfontein, Bethlehem and in Gauteng.
Intense multi-unit operation
Provincial police spokesperson Brigadier Motantsi Makhele said members of the Provincial Organised Crime Unit acted on intelligence-driven information, supported by Crime Intelligence, the Tactical Response Team, Public Order Police, and the Mounted Unit.
“The starting point was at the Labour House in the Bloemfontein CBD where the arrest of one of the first persons of interest took place,” Makhele said in a statement.
‘A sophisticated scam’
“This comes after months of meticulous investigation into a sophisticated scam involving the fraudulent claims of [UIF] payments,” he added.
Makhele said the masterminds behind criminal activity allegedly recruited unsuspecting individuals and used their personal information to register fictitious companies.
These companies then allegedly submitted false claims to the Department of Labour.
The fraudulently obtained funds were shared among the recruiters – or runners – and, in some cases, with the person whose identity was used in the company registration.
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“As estimated, the department might have suffered a loss on more than R1.5 million,” Makhele shared.
Ongoing operation in the Free State and Gauteng
He said the takedown operation, which began early on Thursday morning, marks only the beginning as arrests continue in various towns across the Free State and at identified locations in Gauteng.
Police expect to arrest 20 suspects through the operation.
Once arrested, the suspects are expected to appear before the Bloemfontein Magistrate’s Court on 8 July 2025.
Crime doesn’t pay
Provincial police commissioner Lieutenant General Baile Motswenyane said the case serves as a warning that crime does not pay.
She said police will continue to dismantle criminal networks wherever they exist.
“It is high time that those who exploit government systems for personal enrichment are held accountable for their actions,” Motswenyane said.
“I applaud our investigators for their tireless efforts and unwavering commitment to justice.”
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