Fumu Mkalira Msiska and Family Appear in Middelburg Court Over Alleged R26.9 Million UIF TERS Fraud Scheme
A 48-year-old Malawian-born permanent South African resident, Fumu Mkalira Msiska, his wife Gladness Msiska Mkhonto, and his brother-in-law Bongani Zoran Mkhonto appeared before the Middelburg Magistrate’s Court on Monday, 18 May 2026, facing charges linked to an alleged multi-million-rand COVID-19 UIF TERS fraud scheme.
The trio appeared in court after handing themselves over to the Hawks’ Serious Corruption Investigation unit in Nelspruit on Sunday. Authorities allege the accused unlawfully benefited from the COVID-19 Temporary Employee Relief Scheme by claiming funds for more than 700 ghost employees and former workers through a company known as A and F Consulting.
The case has sent shockwaves through Mpumalanga and beyond, with investigators claiming that nearly R27 million intended to support struggling workers during the COVID-19 pandemic may have been diverted into private accounts, luxury assets, vehicles, and properties.
What Happened in the R26 Million UIF TERS Fraud Case in Mpumalanga
According to investigators, the alleged fraud dates back to 2020, when businesses across South Africa were applying for financial relief through the UIF Temporary Employee Relief Scheme, commonly known as TERS.
The programme was introduced during the COVID-19 lockdown period to help companies continue paying workers whose incomes were affected by restrictions and business closures.
Authorities allege that A and F Consulting exploited the emergency relief system by submitting fraudulent claims for more than 700 ghost employees and former staff members who were allegedly no longer employed by the company.
Investigators say the company received approximately R26 943 793.19 from the UIF through these alleged fraudulent applications.
The scale of the alleged COVID-19 fraud has stunned many South Africans, especially because the funds were intended to assist vulnerable workers and businesses during one of the country’s most difficult economic periods.
The Hawks, together with the Special Investigating Unit (SIU), the Unemployment Insurance Fund (UIF), and the National Prosecuting Authority’s Asset Forfeiture Unit (AFU), spent months tracing financial records, bank transactions, and company activities linked to the suspects.
Authorities claim the money did not remain in the company accounts for long. Instead, investigators allege that substantial amounts were transferred from A and F Consulting into accounts connected to Khulani Quality Contribution, a company allegedly linked to Gladness Msiska Mkhonto during the COVID-19 period.
The investigation has become one of the latest high-profile COVID-19 corruption cases involving emergency relief funding in South Africa.
This is not the first case involving alleged abuse of UIF TERS funding. Since the COVID-19 pandemic, law enforcement agencies have investigated several companies accused of using fake employees, inflated payrolls, and false documentation to obtain millions in government relief money.
How Investigators Linked Ghost Employees to the Fraud Investigation
According to investigators, Bongani Zoran Mkhonto allegedly played a key role in helping facilitate the scheme.
Authorities claim he acted as a “runner” by sourcing identification particulars that were allegedly used in fraudulent UIF applications involving ghost employees and former workers.
Investigators believe some of the personal details used during the applications belonged to people who had previously worked for the company, while others may have been linked to individuals who never worked there at all.
The alleged use of ghost employees allowed the company to claim millions of rand in COVID-19 relief funds that should have been directed toward legitimate workers affected by the pandemic.
Law enforcement officials say the investigation uncovered an extensive paper trail involving bank accounts, company records, and financial transfers that allegedly connected the accused to the fraud scheme.
The matter attracted the attention of multiple agencies due to the sheer size of the alleged loss suffered by the UIF.
Authorities say the alleged fraud also involved money laundering activities, with funds reportedly moved through several bank accounts before being used to purchase assets.
Investigators further allege that the accused benefited personally from the scheme while thousands of ordinary South Africans struggled financially during the COVID-19 crisis.
Public outrage around UIF and TERS corruption remains high across South Africa, with many citizens demanding harsher penalties for those accused of stealing relief funds during the pandemic.
Read more similar corruption and fraud investigations on our website as authorities continue targeting organised financial crimes linked to public money.
Hawks Seize Vehicles and Properties in Middelburg UIF Fraud Probe
As part of the investigation, the National Prosecuting Authority’s Asset Forfeiture Unit moved swiftly to secure assets allegedly linked to proceeds of crime.
Authorities confirmed that several bank accounts connected to the investigation were frozen during the probe.
Investigators also seized five vehicles believed to be connected to the alleged fraud proceeds.
In addition, three properties located in Pretoria, Middelburg, and White River were preserved by the Asset Forfeiture Unit pending further legal processes.
Authorities also confirmed that household goods and office equipment were seized during the investigation.
The asset seizures form part of broader efforts by law enforcement agencies to recover public funds allegedly obtained through corruption and financial crimes.
The Hawks have increasingly focused on tracing assets in high-profile fraud investigations, particularly those linked to COVID-19 corruption.
Many South Africans have welcomed the move, saying authorities must ensure that public money allegedly stolen during the pandemic is recovered wherever possible.
The investigation also highlights growing cooperation between the Hawks, SIU, UIF investigators, and prosecutors in tackling organised financial crimes.
Officials say these collaborative investigations are becoming more effective in identifying fraudulent schemes involving public institutions and emergency relief programmes.
The Middelburg case has once again raised questions about how easily emergency COVID-19 relief systems were allegedly manipulated during the height of the pandemic.
Latest Court Update and What Happens Next in the Middelburg Fraud Case
During their appearance at the Middelburg Magistrate’s Court, Fumu Mkalira Msiska and Gladness Msiska Mkhonto were each granted bail of R300 000.
Bongani Zoran Mkhonto was granted bail of R3 000.
The matter was postponed to 20 July 2026 for further investigation as authorities continue analysing financial records and evidence gathered during the probe.
Investigators have not ruled out the possibility of additional developments as the case progresses through the court system.
The latest update in the Middelburg UIF TERS fraud case has sparked widespread discussion online, with many South Africans expressing frustration over alleged corruption involving pandemic relief funds.
The case is expected to remain under close public scrutiny due to the large amount of money involved and the serious allegations facing the accused.
Legal experts say the prosecution will likely focus on proving how the alleged ghost employee claims were submitted, how the funds were transferred, and whether the accused knowingly participated in the alleged fraud scheme.
The Asset Forfeiture Unit is also expected to continue efforts aimed at preserving and potentially recovering assets allegedly purchased using proceeds linked to the investigation.
Authorities have urged members of the public not to speculate about the outcome of the case while investigations continue.
All three accused remain innocent until proven guilty in a court of law.
Readers can follow our website for more updates on the Middelburg UIF fraud investigation and other major crime and court stories from across South Africa.
