Nhlakanipho Mngomezulu assets frozen: tracing the UIF TERS fraud case and what the interim order means for asset recovery

The Special Investigating Unit (SIU) has secured a significant interim order from the Special Tribunal to freeze assets belonging to Nhlakanipho Mngomezulu, director of Lubelo Hlomuka Holdings, trading as SA Scrum Assembly. This action comes after a thorough investigation revealed the alleged unlawful receipt of over R16.3 million from the Unemployment Insurance Fund’s (UIF) Temporary Employer/Employee Relief Scheme (TERS) through a sophisticated scheme involving ‘ghost employees’ and suspected money laundering. The move to freeze Nhlakanipho Mngomezulu assets is a critical step in the ongoing efforts to recover public funds misappropriated during the COVID-19 pandemic.

Detailed breakdown of the Nhlakanipho Mngomezulu assets frozen case

• Date of Order: The interim preservation order was granted by the Special Tribunal on Friday, 17 April 2026.
• Key Individual: Nhlakanipho Mngomezulu, identified as the director of Lubelo Hlomuka Holdings, which trades as SA Scrum Assembly. The SIU has also identified him as the alleged mastermind of a broader syndicate in connection with other TERS fraud cases.
• Companies/Institutions Involved:
  • Special Investigating Unit (SIU): The government agency responsible for investigating serious malpractice, corruption and maladministration in state institutions, and for recovering financial losses suffered by the state.
  • Special Tribunal: A court established to adjudicate on matters emanating from SIU investigations. Judge Margaret Victor, President of the Special Tribunal, granted the interim order.
  • Unemployment Insurance Fund (UIF): Administered by the Department of Employment and Labour, the UIF provides short-term financial relief to workers.
  • Department of Employment and Labour: The government department overseeing the UIF.
  • Lubelo Hlomuka Holdings (trading as SA Scrum Assembly): The company, directed by Mngomezulu, that allegedly unlawfully received the TERS funds. It is described as a Gauteng-based training company.
  • National Prosecuting Authority (NPA): The SIU will refer evidence of criminal conduct to the NPA for further action.
• Amount Involved: Approximately R16,362,525.29 was unlawfully received from the UIF TERS. Mngomezulu personally benefited by over R5 million from these funds.
• Alleged Scheme: The funds were obtained through a sophisticated fraudulent scheme involving “ghost employees” – fictitious workers used to justify claims from the UIF. The money was then diverted from its intended purpose and channelled through other accounts in a pattern consistent with money laundering.
• Timeline of Fraud: The unlawful receipt of funds occurred between 2020 and 2022.
• Assets Frozen:
  • Vehicles: Volkswagen VN 750 Caravelle, KIA K2700, Toyota Avanza, and Ford Ranger. These were allegedly purchased in cash shortly after the funds were received.
  • Immovable Properties (primarily in KwaZulu-Natal): Two properties in Glyndale, four apartments in Pietermaritzburg, and one property in Zeekoe Vallei, eThekwini.
  • Bank Accounts: Linked to both Nhlakanipho Mngomezulu and SA Scrum Assembly.
• Purpose of Freezing: The interim order prevents Mngomezulu from selling, disposing of, transferring, leasing, or otherwise dealing with these assets until the matter is finalised. The SIU’s ultimate intention is to have these assets forfeited to the State.
• Presidential Mandate: The SIU’s investigation falls under Presidential Proclamation R.8 of 2021, which authorised probes into irregularities relating to UIF TERS payments during the COVID-19 pandemic.

A full summary of the alleged fraud leading to Nhlakanipho Mngomezulu assets being frozen

The Special Investigating Unit (SIU) in South Africa has achieved a significant legal victory by obtaining an interim order from the Special Tribunal to freeze assets linked to Nhlakanipho Mngomezulu, the director of Lubelo Hlomuka Holdings, which trades as SA Scrum Assembly. This decisive action is part of a broader crackdown on corruption related to the Temporary Employer/Employee Relief Scheme (TERS) funds, which were vital in supporting workers affected by the COVID-19 lockdown.

According to the SIU, the company, SA Scrum Assembly, unlawfully received approximately R16,362,525.29 from the Unemployment Insurance Fund (UIF) between 2020 and 2022. The investigation uncovered a sophisticated fraudulent scheme where funds were allegedly claimed for “ghost employees” – individuals who were not legitimate workers of the company. Bank record analysis showed 45 payments from the UIF to SA Scrum Assembly, but critically, there was no evidence that these funds were subsequently used to pay employee salaries. Instead, the money was reportedly channelled through various other accounts, a pattern indicative of money laundering.

Investigators further revealed that Nhlakanipho Mngomezulu personally benefited substantially from this alleged fraud, receiving more than R5 million in multiple payments derived directly from the TERS funds. Shortly after the fraudulent receipts, Mngomezulu allegedly embarked on a spending spree, acquiring several vehicles in cash, including a Volkswagen VN 750 Caravelle, KIA K2700, Toyota Avanza, and Ford Ranger. Furthermore, immovable properties were purchased using these misappropriated funds, including two properties in Glyndale, four apartments in Pietermaritzburg, and one property in Zeekoe Vallei, eThekwini, all in KwaZulu-Natal. Bank accounts linked to both Mngomezulu and SA Scrum Assembly have also been frozen as part of the preservation order.

The SIU initiated the process to secure preservation orders in November 2025, with Judge Margaret Victor, the President of the Special Tribunal, granting the interim order on 17 April 2026. This order prohibits Mngomezulu from selling, transferring, leasing, or otherwise dealing with the identified assets until the case is finalised. The ultimate goal of the SIU is to ensure the permanent forfeiture of these assets to the State, aiming to recover the public funds that were illegally obtained. This investigation is part of a wider mandate given to the SIU by President Cyril Ramaphosa under Proclamation R.8 of 2021, focusing on combating corruption and maladministration in UIF TERS payments. Any evidence of criminal conduct uncovered during the investigation will be referred to the National Prosecuting Authority (NPA) for potential criminal charges. You can find more trending stories on Student Portal Org SA Trending.

Questions and answers about the Nhlakanipho Mngomezulu case

• What is the purpose of freezing Nhlakanipho Mngomezulu’s assets?

  The assets were frozen to prevent Nhlakanipho Mngomezulu from selling, transferring, or otherwise dealing with them while the Special Investigating Unit (SIU) pursues their permanent forfeiture to the State. This ensures that public funds allegedly obtained through fraud can be recovered.

• What is the Temporary Employer/Employee Relief Scheme (TERS) and why was it introduced?

  TERS was a government initiative under the Unemployment Insurance Fund (UIF) implemented during the COVID-19 pandemic. Its purpose was to provide financial relief and support to workers whose incomes were affected by the lockdown restrictions.

• How much money is Nhlakanipho Mngomezulu alleged to have fraudulently obtained?

  Nhlakanipho Mngomezulu, through his company SA Scrum Assembly, is alleged to have unlawfully received approximately R16,362,525.29 from the UIF TERS scheme. He personally benefited by over R5 million.

• What kind of assets have been frozen?

  The frozen assets include several vehicles (Volkswagen VN 750 Caravelle, KIA K2700, Toyota Avanza, Ford Ranger), immovable properties in KwaZulu-Natal (two in Glyndale, four apartments in Pietermaritzburg, and one in Zeekoe Vallei, eThekwini), and various bank accounts linked to Mngomezulu and SA Scrum Assembly.

• Who is investigating this case?

  The investigation is being conducted by the Special Investigating Unit (SIU), mandated by President Cyril Ramaphosa under Proclamation R.8 of 2021 to probe irregularities in UIF TERS payments.

• What are the next steps in this case?

  The interim preservation order will remain in effect until the matter is finalised. The SIU’s aim is to have the frozen assets permanently forfeited to the State. Additionally, any evidence of criminal conduct uncovered during the investigation will be referred to the National Prosecuting Authority (NPA) for further action, which could lead to criminal charges.