A KZN businessman is suspected of being involved in the theft of R7.5 million from the Department of Cooperative Governance and Traditional Affairs.
|||Durban - A Kwazulu-Natal businessman has been arrested by the Hawks commercial crime unit for his alleged involvement in the theft of R7.5 million from the provincial Department of Cooperative Governance and Traditional Affairs (Cogta).
Department spokesman, Lennox Mabaso, said the businessman handed himself over to the Hawks on Wednesday morning after an investigation.
He said the department and the Hawks were now searching for a woman employee who had disappeared after the department picked-up the discrepancy.
Mabaso said the money was earmarked for Ingwe Municipality in southern KZN.
He said the official managed to bypass an “already complex biometrics procedure” for settling government invoices by rerouting the R7.5m payment to a private account.
“The department was quick to pick up the audit trail in the accounting system and identified the alleged culprit who has since vanished.
“The swift reaction by the department and the Hawks has led to the arrest of a business individual allegedly linked to the theft of public funds,” said Mabaso.
He said the department was also investigating whether the employee was aided by others both internally and externally.
He said the department noticed the theft last week and while they were investigating, the employee disappeared.
“This biometric system is configured to a very few employees in the unit that deals with payments to suppliers and municipalities. No one else has access to that system except the few. Unfortunately we can’t give out too many details because the matter is still under investigation,” Mabaso said.
MEC Nomusa Dube-Ncube welcomed the “swift” arrest.
“We are following important leads. This is a most unfortunate incident and it must prompt us in government to rethink the way we handle monetary transactions.
“The current system where administration officials are responsible for processing payments, some worth millions to service providers, warrants a review so that government minimises the risks of falling prey to scams of this nature,” said Dube-Ncube.
“We have also requested the Hawks to investigate whether a possibility exists of a syndicate preying on officials with access to government transactions and system procedures.”
Daily News
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