In a decisive move to safeguard public resources, the Special Tribunal has approved a preservation order immobilising a R2.7 million immovable asset in KwaZulu-Natal. The ruling follows a formal application by the Special Investigating Unit (SIU) as part of its broader mandate to recoup state funds diverted through fraudulent claims under the Unemployment Insurance Fund’s Temporary Employer/Employee Relief Scheme (UIF-TERS).
The Entity at the Centre of the Probe
The frozen asset is registered under Ndabezinhle Luthuli and is directly associated with Ziqoqe Construction CC. According to the SIU’s investigative dossier, the company became the focal point of allegations concerning the misuse of pandemic relief funding intended to support vulnerable workers during national lockdowns.
Between 27 March 2020 and 15 August 2020—the height of South Africa’s initial COVID-19 shutdown—Luthuli, acting on behalf of Ziqoqe Construction, lodged multiple TERS applications citing 673 individuals as employees requiring financial assistance.
Disbursement Without Distribution
Records confirm that the UIF transferred a cumulative sum of R9,836,047.06 to Ziqoqe Construction across a four-year window, from 21 July 2020 through 30 September 2024. Despite receiving these disbursements, investigators found no evidence that any of the named workers received payment. Furthermore, Luthuli did not initiate any process to refund the amounts to the UIF once the irregularities came to light.
Forensic verification uncovered additional red flags: a number of the listed beneficiaries were determined to be non-existent (“ghost employees”), and several real individuals contacted during the inquiry explicitly denied any employment relationship with the company.
Following the Money Trail
The SIU’s financial tracing efforts revealed that the now-restricted property was acquired in November 2023. Transactional analysis flagged these purchases as potentially illicit, suggesting that proceeds from the misappropriated TERS allocations may have been laundered into tangible assets for Luthuli’s personal advantage.
To strengthen its evidentiary base, the SIU executed coordinated search-and-seizure operations on 12 December 2025, targeting persons and corporate entities linked to the alleged fraud network.
What the Tribunal Order Means
Under the Special Tribunal’s ruling, the Deeds Office has been instructed to place a hold on the property registered in Luthuli’s name. Effective immediately, the asset cannot be:
- Sold or transferred to another party
- Used as collateral or otherwise encumbered
- Altered in ownership status
Any exception to these restrictions requires either a mutually signed written agreement between relevant parties or a further directive from a court or the Tribunal itself.
Notably, the order does not relieve Luthuli or Ziqoqe Construction of their ongoing financial duties tied to the property. They remain accountable for municipal levies, insurance premiums, maintenance expenses, and other associated costs while legal proceedings continue. The question of who will bear the legal costs of the application has been set aside for future adjudication.
A Broader Enforcement Strategy
This preservation order forms part of the SIU’s intensified campaign to reverse the financial damage caused by corruption during the pandemic era. In its closing remarks, the Unit reiterated its unwavering focus on retrieving misused public funds and ensuring that those who manipulated emergency support mechanisms face appropriate consequences.
As investigations progress, the SIU has indicated that further asset recovery actions and potential criminal referrals may follow, reinforcing its message that exploitation of state relief programmes will be met with sustained legal and financial accountability.