Bloemfontein Labour Official
By Thabo Mosia
In a major breakthrough in the fight against public sector fraud, a 42-year-old office manager employed at the Department of Labour’s Bloemfontein office has been arrested for allegedly playing a central role in a sophisticated Unemployment Insurance Fund (UIF) scam. The arrest was made during a large-scale police takedown operation executed across Bloemfontein, Bethlehem, and parts of Gauteng.
The operation, led by the South African Police Service (SAPS) Free State’s Provincial Organised Crime Unit, was based on months of intensive investigation and intelligence gathering supported by Crime Intelligence, the Tactical Response Team (TRT), Public Order Police, and the Mounted Unit.
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Sophisticated Scam Uncovered: Fake Companies, Real Payouts
Free State police spokesperson Brigadier Motantsi Makhele confirmed that the operation was launched following credible information regarding fraudulent UIF claims submitted through fictitious companies. Investigators uncovered that the syndicate was using stolen personal identities of unsuspecting individuals to register fake businesses, which then submitted false UIF claims to the Department of Labour.
“The fraudulently obtained funds would then be shared among the recruiter (or runner), and in some cases, even the person whose identity was used,” Makhele explained.
According to preliminary estimates, the Department of Labour may have suffered financial losses exceeding R1.5 million as a result of this scheme. Law enforcement suspects the actual figure may grow as investigations widen.
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Arrest of Key Role Player and More to Follow
The arrest of the 42-year-old office manager at Labour House in the Bloemfontein CBD was the first of many expected to follow. The official is believed to have played a pivotal role in facilitating and coordinating fraudulent UIF payments through internal systems, making him a central figure in the syndicate’s operations.
The SAPS operation, which began in the early hours of Wednesday morning, is still underway with arrests continuing in various Free State towns and strategic locations in Gauteng. Authorities expect to detain up to 20 suspects connected to the scam.
All suspects arrested will appear before the Bloemfontein Magistrate’s Court on Monday, 8 July 2025.
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SAPS Commissioner Applauds the Crackdown
Free State Provincial Commissioner, Lieutenant General Baile Motswenyane, praised the SAPS members and supporting units for the professionalism and precision with which the operation was executed.
“It is high time that those who exploit government systems for personal enrichment are held accountable for their actions,” said Lieutenant General Motswenyane. “I applaud our investigators for their tireless efforts and unwavering commitment to justice. This case serves as a warning that crime does not pay and that we will continue to dismantle criminal networks wherever they exist.”
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Investigations Ongoing as Public Sector Fraud Comes Under Scrutiny
The Department of Labour has previously come under public scrutiny for lapses in UIF disbursements, particularly during the COVID-19 relief period, which saw a rise in fraudulent claims across the country. However, this latest operation signals a stronger pushback by law enforcement to clamp down on internal collusion and criminal exploitation of government systems.
The involvement of a departmental insider highlights the urgent need for stronger internal controls, digital safeguards, and identity verification protocols within the UIF processing system.
SAPS has indicated that the investigations are still ongoing, and more arrests are imminent as additional evidence is uncovered through forensic analysis and financial tracing.
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Public Urged to Remain Vigilant
The SAPS is encouraging members of the public to report suspicious activity related to UIF fraud or identity theft. This can be done anonymously through Crime Stop or via the MySAPS mobile app.
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