DENNIS Modika has been sentenced to 15 years in prison for fraud totaling R5 million.
He was found guilty of eight counts of fraud in the Joburg Special Economic Crimes Court in Palm Ridge after defrauding the Unemployment Insurance Fund and unlawfully benefiting from the Covid-19 Temporary Employer/ Employee Relief Scheme (TERS).
In April 2020, the UIF developed and implemented the Covid-19 TERS Benefit Scheme via an online portal on the department’s website.
"In the case of an employer who only has a few employees, or a CSV file, a spreadsheet that contains all employee data if an employer has many employees.
"The Covid-19 TERS benefit paid a limited portion of the salaries of employees where the employer had to close operations (completely/or partially) due to the National Lockdown and/or linked with the Covid-19 pandemic," Mjonondwane said.
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In cases where employers had to submit applications to the Department of Employment and Labour on behalf of their employees, Mjonondwane said these benefits would then be paid directly to the employer, who would then pay the employees.
She said that the employer or employee had to be registered with the UIF to be eligible for TERS.
However, this was not the case with Dennis, who defrauded the department of more than R3 million.
According to Mjonondwane, Dennis, who was the sole director of Modika Trading and Projects (pty) Ltd, had submitted the names of 1 358 fictitious employees to the Department of Employment and Labour from 1 January 2020 to 3 December 2022.
"The accused and his company didn't have the reported workers in their employment and were therefore not eligible to apply for the relief fund. The department paid an amount totaling over R5 million into a bank account belonging to the accused," Mjonondwane said.
It was not long before his crimes were uncovered, and Dennis was arrested by members of Hawks in a sting operation in Daveyton, Ekurhuleni on 10 July 2023.
Senior state Advocate Frans Mhlongo pleaded for a harsh sentence. He said the court must impose a sentence that reflects not only the looting of the UIF coffers, but also the hardship and suffering inflicted on the rightful recipients.
He further argued that the accused was only concerned with satisfying the fleeting pleasures of life and not the welfare of his countrymen.
As a result, Dennis was sentenced to a hefty sentence of 15 years and found guilty.
Mjonondwane said the NPA welcomed the judgment and applauded Mhlongo and the investigating officer, Warrant Officer Siralile, for ensuring that the abuse of the much-needed relief fund didn't go unpunished.
