The Unemployment Insurance Fund (UIF), an entity of the Department of Employment and Labour, has welcomed the arrest of two Eastern Cape women linked to an alleged R1.1 million fraud involving UIF funds.
Nandipha Tutani, 47, and Nobuntu Mjili,50, were arrested by the Hawks' Serious Commercial Crime Investigation Unit in Gqeberha on 15 September 2026. They appeared in the Gqeberha Specialised Commercial Crime Court later the same day.
Alleged scheme dates back to 2018
According to investigators, the alleged scheme dates back to 2018, when Tutani was employed by the Department of Employment and Labour in the Employer Services Section. Her duties included capturing, verifying and filing employer declaration of employees forms (UI-19 forms) on benefits files.
The investigation alleges that prospective UIF claimants were assisted with claim forms and other documentation even though some did not meet the requirements to receive benefits. In certain instances, arrangements were allegedly made for bank accounts through which proceeds from the fraudulent claims could be received. Discrepancies were later identified during a departmental audit, after which the matter was referred for further investigation. Tutani and Mjili are alleged to have acted together in arranging and executing the scheme.
Bail and court postponement
Both accused were released on R2 000 bail each. The matter was postponed to 5 October 2026 for legal representation.
UIF strengthens accountability measures
UIF Commissioner Thulani Tshefuta said the Fund views the arrest as an important step in strengthening accountability and protecting resources meant to provide social protection to eligible workers and their families during periods of unemployment and qualifying conditions.
“We welcome the work of the Hawks in pursuing allegations of fraud involving UIF funds. Every rand lost through fraudulent activity is a resource that should have been available to support workers who legitimately depend on the Fund. We will continue to cooperate with the law-enforcement authorities to ensure that allegations of wrongdoing are thoroughly investigated and that those found to have acted unlawfully are held accountable,” Tshefuta said.
The UIF has strengthened its measures to detect and prevent fraudulent claims and transactions. It continues to work with relevant stakeholders to safeguard UIF resources and encourages members of the public, employers and other stakeholders to report suspected fraudulent activities involving UIF benefits.