In a landmark case, Luyanda Brian Vava, a 34-year-old director of Widelink Technologies Pty Ltd, has been convicted of defrauding the Covid-19 Temporary Employer Relief Scheme (TERS). Vava, who pocketed his employees’ Unemployment Insurance Fund (UIF) payouts during the pandemic, has been fined R450,000 by the East London Commercial Crimes Court.
The court found Vava guilty on seven counts of fraud following an investigation by the Directorate for Priority Crimes Investigation, commonly known as the Hawks. The fraud, which dates back to 2020, came to light when Vava’s employees reported that they had not received any of the funds he had claimed on their behalf.
Details of the Fraud
During the height of the Covid-19 pandemic, businesses were urged to continue paying their employees and then claim compensation from the government through the TERS programme. Vava, however, unlawfully lodged a claim from the UIF under the guise of paying his employees, but he kept the money for himself.
Hawks spokesperson Warrant-Officer Ndiphiwe Mhlakuvana explained that Vava had intentionally misrepresented the claim, which led to the Special Investigating Unit (SIU) launching a probe. The investigation uncovered that Vava had defrauded the UIF of R300,000, which was meant to support his employees during the lockdown. None of his workers received a cent from the scheme.
Arrest and Conviction
After a thorough investigation, Vava was arrested by the Hawks on April 29, 2024. He made his first appearance in the East London Magistrate’s Court that same day and was released on bail of R1,000. Nearly four years after the fraudulent activity, justice was served when Vava was sentenced on Friday, facing a fine of R450,000 or three years of imprisonment.
The court also sentenced his business entity, Widelink Technologies, to a similar fine of R450,000. However, this amount was wholly suspended for three years, conditional on no further fraudulent activities being committed by the company during that time.
Payment Terms and Conditions
In addition to the hefty fine, Vava was ordered to make an immediate payment of R5,000, followed by monthly payments of R10,000 starting from October 31, 2024. This ensures that the fine will be gradually paid off, but the ruling also sends a clear message that fraudulent behaviour, especially in times of crisis, will not be tolerated.
A Reminder of Accountability
The case highlights the importance of accountability during the pandemic. While many businesses were rightfully claiming UIF relief to support their employees during a difficult time, cases like this reveal the unfortunate reality of some employers taking advantage of government assistance programmes for personal gain. The Hawks and SIU’s dedication to investigating and prosecuting such cases demonstrates the government’s commitment to justice and protecting workers’ rights.
As Vava faces the consequences of his actions, this case should serve as a reminder to businesses and individuals that fraudulent activities will be met with severe penalties, and justice will be served for those who were wronged.
Comments