Tribunal preserves Ambleton Farm as probe into multi‑million rand TERS fraud continues
The Special Investigating Unit (SIU) has secured an interim preservation order on a 3.5431‑hectare property in Pietermaritzburg that is alleged to be linked to the diversion of Temporary Employer/Employee Relief Scheme (TERS) funds worth millions of rand.
The Special Tribunal granted the order over Ambleton Farm, prohibiting the alleged syndicate leader Nhlanipho Mngomezulu, entities associated with him and anyone aware of the order from selling, leasing, transferring or otherwise dealing with the property. According to the SIU, the order takes immediate effect and will remain in force while the investigation and any follow‑up civil action continue.
“The order takes immediate effect and will remain in force pending the final determination of the matter and/or further civil proceedings instituted by the SIU,”
The preservation order arises from a broader probe launched under Proclamation No. R8 of 2021. The SIU says its investigation uncovered an alleged syndicate that defrauded the Unemployment Insurance Fund (UIF) and the Department of Employment and Labour of more than R148 million through fraudulent TERS claims submitted during the COVID‑19 pandemic lockdowns.
According to the SIU, the alleged scheme used stolen personal details and fictitious or “ghost” employees to submit claims and divert payments away from intended beneficiaries. The unit says Mngomezulu was allegedly central to the operation and recruited others to submit fraudulent applications in return for a share of the proceeds.
Companies named in probe and amounts alleged
The SIU named a number of companies said to have benefited from the scheme. Its findings as reported include:
- Lubelo Hlomuka Holdings (trading as SA Scrum Assembly) — alleged to have received about R15.9 million.
- Flatmont Enterprise (Pty) Ltd — alleged recipient of more than R13 million, with applications submitted for 659 purported employees although only 45 were recorded as legitimate.
- Ubuhle be Africa — alleged submissions for 85 purported employees while the company reportedly had 12 legitimate employees.
| Company | Purported employees | Legitimate employees | Alleged TERS received |
|---|---|---|---|
| Flatmont Enterprise | 659 | 45 | more than R13 million |
| Ubuhle be Africa | 85 | 12 | not specified |
| Lubelo Hlomuka Holdings (SA Scrum Assembly) | not specified | not specified | about R15.9 million |
The SIU said the alleged fraud involved recruiting participants to submit false claims, enabling siphoning of funds that were intended for workers and businesses affected by lockdown measures.
Local implications and next steps
For Pietermaritzburg residents and property stakeholders, the preservation order means that Ambleton Farm cannot be dealt with while the civil process is under way. The SIU’s approach aims to safeguard assets that may be required to satisfy future civil orders should the tribunal or courts find that proceeds must be recovered.
The SIU has indicated that the interim order remains in place pending the final determination of its matter and any further civil proceedings. No criminal findings were detailed in the reported material; the action reported is a civil preservation to protect assets associated with the alleged fraud while the investigation progresses.
Nationally, the SIU investigation forms part of a series of probes into alleged abuse of pandemic relief instruments. Locally, authorities will be watching whether the preservation order results in asset tracing beyond the farm, or whether other properties or bank accounts linked to the alleged syndicate are targeted.
Residents with questions about the impact on registered tenants or workers on the farm should seek clarity from the parties named in the order or legal advisers; the preservation order restricts the disposal or transfer of the property but does not, according to the SIU statement, itself determine guilt or civil liability.
The SIU did not provide further detail on the full list of properties affected, nor on any imminent hearings to convert the interim preservation into longer‑term confiscation or restitution measures.
