The Private Security Industry Regulatory Authority (Psira) has announced its commitment to cooperate fully with the Special Investigating Unit's (SIU) investigation into a R130m Unemployment Insurance Fund (UIF) training contract. The SIU's probe follows allegations of maladministration, improper or unlawful conduct, and financial losses suffered by the state in relation to Psira and the UIF. Psira's assurance of cooperation comes after the SIU conducted a search and seizure operation at its premises in Pretoria.
The SIU's investigation was authorised by President Cyril Ramaphosa through Proclamation 316 of 2026. The probe aims to uncover facts surrounding the procurement and implementation of training services funded by the UIF through Psira. Acting UIF commissioner Thulani Tshefuta welcomed the search and seizure operation, stating it is an important step in securing relevant evidence. The UIF has pledged to fully cooperate with the SIU and other law enforcement agencies.
Psira regulates South Africa's private security industry, which employs over 580,000 personnel, significantly more than the 180,000 employed by the police. The industry played a crucial role in containing unrest in KwaZulu-Natal and Gauteng in July 2021. However, the sector faces criticism for deducting money from workers' wages for provident funds, medical aid, and the UIF without paying these funds into the respective accounts.
The private security industry has experienced job losses, with 575 people, mostly security guards, retrenched during 2024/25, while 329 jobs were saved. Psira has assured stakeholders that it will make available all relevant information and records requested by the SIU through the appropriate legal processes. The authority will not take any steps that could impede or compromise the SIU investigation.
The UIF has also welcomed the arrest of two Eastern Cape women in connection with an alleged R1.1m fraud case involving UIF funds. Nandipha Tutani, 47, and Nobuntu Mjili, 50, were arrested by the Hawks' serious commercial crime investigation unit in Gqeberha on September 15. The accused were released on R2,000 bail, with the matter postponed to October 5 for legal representation.
Tshefuta emphasised the importance of holding those responsible for wrongdoing accountable, stating that every rand lost through fraudulent activity is a resource that should have been available to support workers who legitimately depend on the fund. The UIF will continue to cooperate with law enforcement authorities to ensure that allegations of wrongdoing are thoroughly investigated.
Psira has urged stakeholders, members of the media, and the public to allow the SIU process to proceed without speculation or prejudgment. The authority will communicate further when it is appropriate to do so and when doing so will not compromise the investigation. The SIU's investigation into Psira and the UIF aims to uncover facts and ensure accountability in the management of public funds.
Key points
- Psira has vowed to comply with all lawful requests for information, documentation, and access required by the SIU.
- The SIU's investigation follows allegations of maladministration, improper or unlawful conduct, and financial losses suffered by the state in relation to Psira and the UIF.
- The UIF has welcomed the arrest of two Eastern Cape women in connection with an alleged R1.1m fraud case involving UIF funds.
