The Special Investigating Unit (SIU) has secured an interim preservation order to freeze a Pietermaritzburg farm valued at R1.4 million, which investigators say was purchased using money linked to an alleged COVID-19 relief fund fraud involving the Unemployment Insurance Fund (UIF).
The 3.5431-hectare property, known as Ambleton Farm in KwaZulu-Natal, is allegedly connected to Nhlanipho Mngomezulu, whom the SIU has identified as the alleged kingpin of a syndicate accused of fraudulently obtaining millions of rands through the Temporary Employer/Employee Relief Scheme (TERS).
The order, granted by the Special Tribunal, prevents Mngomezulu and associated entities from selling, transferring, leasing or otherwise dealing with the property while legal proceedings continue.
The case forms part of a wider investigation into alleged fraud exceeding R148 million involving the UIF and the Department of Employment and Labour.
How the alleged fraud worked
TERS was introduced during the COVID-19 pandemic to provide temporary financial relief to qualifying workers whose employers were unable to pay them because of the economic disruption caused by lockdowns.
However, the SIU’s investigation found that the scheme was allegedly exploited through fraudulent applications submitted on behalf of fictitious employees. According to investigators, stolen personal information was used to create claims for relief payments that were not due to the supposed beneficiaries.
The money was intended to help workers and businesses survive a period of severe economic uncertainty, but investigators allege that members of the syndicate diverted the funds for their own benefit.
The SIU alleges that Mngomezulu orchestrated the scheme and recruited other participants to submit fraudulent claims in exchange for a share of the proceeds.
His company, Lubelo Hlomuka Holdings, which traded as SA Scrum Assembly, allegedly received R15.9 million unlawfully through the scheme.
The investigation into Mngomezulu is linked to a broader network accused of exploiting the pandemic relief programme, with the SIU seeking to recover money allegedly obtained through fraudulent claims.
Who is Nhlanipho Mngomezulu?
Mngomezulu is a businessman and director of Lubelo Hlomuka Holdings, which operates under the name SA Scrum Assembly, a training company linked to the SIU’s investigation into the alleged misuse of UIF TERS funds.
The SIU has identified him as a central figure in the alleged fraud network. Investigators say his company unlawfully received approximately R15.9 million through the scheme.
In a separate development in April 2026, the Special Tribunal granted an order freezing assets linked to Mngomezulu following an investigation into the alleged unlawful receipt of more than R16.3 million in TERS payments. The assets included properties, vehicles and bank accounts linked to him and his company.
The SIU’s allegations centre on claims that fraudulent applications were submitted using fictitious employees, with funds subsequently channelled through different accounts and used to acquire assets.
Mngomezulu has not been convicted of the alleged offences, and the allegations remain subject to legal proceedings.
How the R1.4 million farm was allegedly purchased
The investigation into Ambleton Farm centres on payments made to Flatmont Enterprise (Pty) Ltd, which allegedly submitted TERS claims for hundreds of people who were not genuine employees.
According to the SIU, Flatmont submitted claims for 659 purported employees despite having only 45 legitimate workers.
On 21 January 2022, the company received two TERS payments totalling approximately R1.93 million. The payments amounted to R1,393,728.65 and R532,655.97.
Three days later, R800,000 was transferred to conveyancing attorneys involved in the transfer of Ambleton Farm. Investigators traced the money to the purchase of the property by SA Scrum Assembly, the company linked to Mngomezulu, for R1.4 million.
The transaction forms a key part of the SIU’s efforts to establish how money allegedly obtained through fraudulent claims was converted into property.
The preservation order prevents the farm from being sold or transferred while the matter is being pursued. It does not, by itself, constitute a final finding that the property must be forfeited to the state.
A wider investigation into more than R148 million
The farm case is part of a broader SIU investigation authorised under Proclamation R.8 of 2021, which covers allegations of irregular and fraudulent UIF payments.
According to the SIU, the alleged network exploited TERS by submitting false claims involving multiple companies and fictitious workers. The investigation has uncovered alleged losses exceeding R148 million involving the UIF and the Department of Employment and Labour.
The unit is pursuing civil proceedings to preserve assets and recover public money allegedly lost through the scheme. Any evidence of criminal conduct uncovered during its investigation may also be referred to the National Prosecuting Authority for possible prosecution.
The latest order over Ambleton Farm is intended to prevent the property from being disposed of before the legal process is concluded.
