Graafwater, Western Cape] The employer of Dagbreek Farm in Graafwater, who allegedly defrauded the UIF COVID-19 Temporary Employer/Employee Relief Scheme (TERS), was granted a R5 000 bail, after he appeared in the Clanwilliam Magistrates court this week.
The employer was arrested by the Western Cape Anti-Corruption Unit on 16 September 2021, following attempts made through the local South African Police Service (SAPS) to determine the whereabouts of the employer which led to no success. He appeared in court on Tuesday 21 September 2021.
According to the Western Cape Provincial Chief Inspector (PCI), David Esau, a physical visit was conducted on the farm but the gates were locked and nobody was visible on the farm.
The arrest of the employer follows the Department of Employment and Labour’s response to the complaint received on 02 November 2020, about Dagbreek Farm in Graafwater where the employer was alleged to have claimed TERS funds on behalf of seven employees whilst they still received full salaries.
He said the company applied for TERS funds on behalf of seven employees from the period of 27 March 2020 until 15 September 2020 totalling an amount of R109,376.39.
The allegations further stated that the employer accompanied the employees to an ATM in the town and instructed them to withdraw the monies due to them as per the allocation and took the monies from the employees.
Esau said the inspectorate also found that the employer declared salaries for all seven employees from March to September 2020, which indicates that the employees were fully employed as the Agriculture sector was declared an essential service therefore not affected by the lockdown regulations. Based on this information, Esau said the employer was not allowed to claim from the TERS fund and the employees were not entitled to the monies indicated above.
He said the Department is in possession of some bank statements of the workers where the money was paid into their bank account from the employer’s bank account. The last transaction took place on 22 October 2020.
Esau said the statement of the employees further demonstrate that the employer accompanied the employees to the ATM and waited for them to make to make the transaction and return the money to the employer as he had convinced them that he will return the money to the Fund.
“Some employees had limits on their transactions and the employer proceeded to make deductions from their salaries to make up for the amount outstanding. Our records indicate that at no stage did the employer return the money to the Fund,” added Esau.
The COVID-19 TERS benefit is one of the governments intervention administered by the Unemployment Insurance Fund (UIF) to shield workers whose salaries have been affected by the implementation of the National State of Disaster and subsequent lockdown period.
Esau said the Department welcomed the arrest of the employer and the further move to investigate the case following the inspectorate and SAPS attempts to locate the employer.
He said the inspectorate continues to work tirelessly to recoup COVID-19 TERS monies for employees and also on effecting the refunds to the Fund where misuse or non-payment is demonstrated.
The matter was postponed to 20 October 2021 for further investigation.
Source: Government of South Africa