Mthobisi Nozulela|Published
The Special Investigating Unit (SIU) has secured an interim court order freezing Ambleton Farm in Pietermaritzburg, KwaZulu-Natal, over its alleged link to more than R13 million in fraudulent Temporary Employer/Employee Relief Scheme (TERS) payments.
This comes after the SIU linked the farm to Nhlanipho Mngomezulu, whom its investigation identified as a central figure in a syndicate that allegedly defrauded the Unemployment Insurance Fund (UIF) and the Department of Employment and Labour of more than R148 million.
The SIU alleges that a company linked to Mngomezulu, Flatmont Enterprise (Pty) Ltd, received more than R13 million through fraudulent claims submitted for hundreds of purported employees.
"The order prohibits the UIF TER syndicate kingpin, Mr Nhlanipho Mngomezulu and entities linked to him, and anyone with knowledge of it, from selling, leasing, transferring, disposing of, or otherwise dealing with the farm," the SIU said in a statement.
"It takes immediate effect and remains in force pending the final determination of the matter and/or further civil proceedings instituted by the SIU."
How the alleged TERS fraud was carried out
The SIU said its investigation found that the syndicate used stolen personal details and fictitious, or “ghost”, employees to submit fraudulent TERS claims, diverting money intended to support businesses and workers affected by the COVID-19 lockdowns.
According to the SIU, Flatmont Enterprise allegedly submitted claims for 659 purported employees, despite having only 45 legitimate employees. A second company, Ubuhle be Africa, is accused of submitting claims for 85 purported employees, although it had only 12 legitimate employees.
The investigation further found that Flatmont Enterprise received two TERS payments of R1,393,728.65 and R532,655.97 on January 21, 2022.
Three days later, R800,000 was transferred to conveyancing attorneys handling the transfer of Ambleton Farm. Bank records linked the transaction to the purchase of the farm by SA Scrum Assembly, a company owned by Mngomezulu, for R1.4 million.
The SIU also found that Mngomezulu’s company, Lubelo Hlomuka Holdings, trading as SA Scrum Assembly, unlawfully received approximately R15.9 million through the TERS scheme.
Further assets frozen as fraud case continues
The latest preservation order follows another order granted by the Special Tribunal in December 2025 under case number GP31/2025.
That order froze assets linked to Mngomezulu, including properties in Pietermaritzburg and Durban, several vehicles and bank accounts associated with him and SA Scrum Assembly.
In December 2025, the Special Tribunal also froze assets linked to Yolanda Mgobo over allegations that she benefited from proceeds linked to several entities.
In September 2026, Mgobo, Jessica Tapu and Sipho Sokhela appeared in the Pretoria Specialised Commercial Crimes Court facing charges including fraud, theft and money laundering linked to the alleged TERS fraud.
They were released on R10,000 bail each and are expected back in court on December 3, 2026.
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