They were consequently charged with just over 80 counts of fraud, which includes theft and money laundering. During the period that Skosana pretended to be claiming for his staff, he made a total of R63 033.56, which the department is now without. He was found guilty and he was dismissed on 10 April 2014. During arbitration, he admitted to claiming overtime for time spent outside the workplace during his lunch hour however he explained that his actions were not dishonest and intentional and had apologised for the transgressions. At the CCMA, Mr Ngcobo challenged the substantive fairness of his dismissal. 3 0 obj However, labour law expertise is required to ensure that the dismissal is both procedurally and substantively fair. <> LISTEN | Thinking the unthinkable: What if Siya Kolisi cant make the World Cup? "The woman confirmed the tip-off she received on the impeding robbery after probing the helper's cellphone.". May Employers Dismiss All Employees Who May Be Involved Without Evidence? endobj <> This week, Ivan Israelstam explains the legally distinct reasons for dismissal: for misconduct, for poor work performance, and for operational requirements. Police say a serious commercial crime investigation has linked Mazibuko to an alleged case of fraud committed at Harrismith Standard Bank earlier this year by Hopewell Mpendula Daguma (31) and his partner Thandeka Tryphina Mlangeni (32). The Court additionally ordered him to pay the spent money back to the department. To prove fraud, the employer must be able to prove misrepresentation, unlawfulness, actual or potential prejudice and intention. South African CEO Ordered to Pay a Record $3.4B in CFTC Bitcoin Forex Nothing in any of Labour Guides websites is to be considered as rendering legal or professional advice. In the absence of a clear and credible reason for making such an alleged error I would submit that the balance of probabilities are that the employee completed the check form intentionally and that he did so dishonestly in order to make it appear that he had completed the check. Last year Ramaphosa was booed at a May Day rally - unions say things have only got worse, Net closing in: Two more arrested in connection with Thabo Bester escape, Critical changes made to SASSA payment dates for the month of May, Prof Dan Kgwadi, NWU's 'transformation driver', dies, Costa Titch: Ultra SA, emergency medical company deny claims of negligence in treating rapper, Here is what the ANCs elections strategy workshop in May will entail, After 4 years and R100m to fix broken municipalities, a lot of plans are in place, says Cogta, Child sex abuse ring: Police have already identified some of Ackerman's clients, Municipality allows sewage spill to flow through township for six months. Tax fraudsters sentenced in high court. In times of uncertainty you need journalism you can trust. On review the Labour Court (LC) dismissed the employer's application to set aside the award. I hope the latest conviction and arrests send a strong message to other would-be fraudsters that the long arm of the law will always catch up with you. This week, the former head of the state-owned electricity utility, a company brought to its knees by mismanagement and corruption, appeared at a parliamentary hearing virtually from an undisclosed location because of fears for his safety, he said. Millions of people living in South Africa rely on grants from Sassa. BREAKING NEWS LIVE | More arrests in Thabo Bester escape case. A convenient time and During 2012, now seven years ago, he fraudulently started a company named Simajale Transport and General Dealer. Another arrest in fraud case involving Standard Bank employee South Africa Blue Sky Publications (Pty) Ltd T/A TheSouthAfrican Number: 2005/028472/07. However, it is most unclear how an employee could logically complete an entire check confirmation form by mistake. The man was arrested in the early hours of Wednesday by the serious corruption investigation unit and was expected to appear in the Potchefstroom Magistrates Court to face charges of fraud and money laundering. Mr Ngcobo claimed overtime at an incorrect rate for a period of three months in July, November and December 2013 he had submitted claims at the rate of 1.5 per hour which was higher that his normal hour rate. The liability of an employer, however, under circumstances where an employee commits an intentional wrong entirely for his or her own purpose, is a very different kettle of fish. WhatsApp 060 011 021 1. Our offices are for administrative purposes only, no visitors will be accepted without an appointment. Invest in the future today. In August of 2018, three men by the names of Maxwell Ramaphosa, Samuel Mfeleng, and Kgabo Johanna Methi were found guilty on charges of defrauding the Department of Labours Compensation Fund of R476 150.58 as reported by The Citizen. You can cancel anytime and if you cancel within 14 days you won't be billed. US court orders South African firm's CEO to pay $3.4 bln for bitcoin fraud % Moroko Moremi, 37, and his wife Treasure Moremi, 34, were recently found guilty of fraud by the Pretoria Specialised Commercial Crimes Court. How To Apply To Rewrite IEB Matric Papers, Beware Of Retrenchments For Poor Performance, How To Check The Status Of Your NSFAS Application, Here's The Sassa Grant Payment Schedule For 2023/2024, 2024 Applications Are Now Open At These Universities, April Sassa Grant Payments Continue Today, often have easier access to bigger amounts of money, can cause great damage to customer relations, can be in a better position to cover up irregularities. They appeared in the Harrismith Magistrates Court and were granted R5 000 each, pending further investigation. Should an individual be declined to receive the grant, they have an opportunity to lodge an appeal. <>/Metadata 169 0 R/ViewerPreferences 170 0 R>> Tax fraudsters sentenced in high court - South African Revenue Service The courts sentenced him to 5 years in prison. The legal procedures that an employer is required to follow in implementing dismissals for misconduct, retrenchments and poor work performance are all different. Murray was shot in the head while driving with his son in an SUV on the N1 highway just outside Johannesburg in March. They are scheduled to be sentenced on 17 May 2022. More AP Africa news: https://apnews.com/hub/africa. The Global Initiative Against Transnational Organised Crime counted a total of 1,971 assassination cases in South Africa between 2000 and 2021, with whistleblowers accounting for many of the targeted individuals. WhatsApp 060 011 021 1. She was shot multiple times inside her car soon after dropping her daughter off at school and her story has become a rallying call. "The supervisors allegedly recruited about 56 ghost employees who were paid approximately R5 000 per month. Security manager arrested for 'ghost employee' scam worth R2.1m The Provincial Head of the Directorate For Priority Crime Investigation Mpumalanga Major General, Zodwa Mokoena applauded the Investigating and Prosecuting teams for the conviction. Working together with law enforcement agencies, we will follow every lead pointing towards suspected fraud. Buying a home: Are deposits still needed? "Her passport details, banking information and daily routine, among others, were already given away," Mpumalanga Community Safety, Security and Liaison MEC Vusi Shongwe added. He was found guilty and he was dismissed on 10 April 2014. Employers need to understand that legally, where they wish to infer that an employee committed fraud, they must at least be able to prove that the false act could not have been carried out in error. The ombud investigated more than 2,880 banking fraud related cases last year, an increase of 7.5% from 2020. Knowing when they will receive their money is critical for beneficiaries of the grant as it will inform them how to manage their funds. 318 0 obj <>/Filter/FlateDecode/ID[<9CAA0A4E796A6F41B6B6610C6B7604F8><8C9E643D68FAF54AB172E07245A689B9>]/Index[295 41]/Info 294 0 R/Length 106/Prev 265888/Root 296 0 R/Size 336/Type/XRef/W[1 2 1]>>stream Ramaphosa and Mfeleng were found guilty on ten counts of money laundering and fraud, and Methi was found guilty on three counts of the latter. Two employees who were dismissed by G4S have been arrested in connection with the Thabo Bester escape case. All fraudsters are on notice and we hope more suspects are arrested and sent straight to jail. The Unemployment Insurance Fund in South Africa ensures that workers can access short term financial relief if they require it, by asking employers to contribute towards the Fund. Those who attempt or defraud the Unemployment Insurance Fund (UIF) should be aware that they will be arrested and punished for their heinous actions. Proving Fraud Requires High Level Skills What is required to prove "fraud" in a disciplinary enquiry? Journalism strengthens democracy. a) thereof. In times of uncertainty you need journalism you can trust. It's that time of the year, applications season. Offences and penalties. The domestic worker was arrested on Tuesday but has yet to appear in court. BREAKING NEWS LIVE | More arrests in Thabo Bester escape case. Furthermore, the convict was declared unfit to own a firearm in terms of the firearms control Act, said Sekgotodi. The company led clear evidence that it had lost trust in him. All JSE data delayed by at least 15 minutes. WATCH | Oh buoy! Simply put, the arbitrator found the employee's dismissal unfair once he was dismissed for a misconduct which he was never charged for. The specialist accountant and liquidator, 57-year-old Cloete Murray, was working on the financial accounts of a company that was heavily implicated in allegedly bribing government ministers and others to win huge state contracts. Never miss a story. He advised communities to avoid carrying large sums of cash but to rather share the dividends by doing electronic transfers. Prevention involves the principle of trusting nobody and the implementation of comprehensive safeguards. Tucker Carlson: firing highlights texts unearthed during Fox-Dominion What are examples of workplace fraud and how is it proved? You will receive mail with link to set new password. Financial Crime in South Africa: Overview | Practical Law This week Ivan Israelstam explains that labour law does allow an employer to dismiss an employee. Go to: www.labourlawadvice.co.za. Once an investigation has been completed and sufficient evidence has been established to take disciplinary action against the employees involved, the next step is, generally, to convene a disciplinary enquiry. After concerns from Mr Ngcobos line manager regarding his overtime claims, the employer audited his claims forms and the investigation revealed the following: Mr Ngcobo was charged with dishonesty and/or falsification of overtime claims. Intention is everything: The role of intent in employee discipline for dishonesty and/or fraud, By Thabang Rapuleng, Director, Tamsanqa Mila, Associate, Employment Law, Cliffe Dekker Hofmeyr. All rights reserved. Go to: www.labourlawadvice.co.za. 4 0 obj hbbd``b`SA* zHX@L? It is a type of dishonesty that is normally committed in such a way that its very existence is concealed. It provides cover to workers injured and/or who contract diseases at work. Deokarans killing spurred another corruption whistleblower, Athol Williams, to leave the country, he said. Employees have access to highly experienced and skilled trade union officials to represent them at CCMA. Are you an IEB learner looking to improve your matric results or unable to sit for the exams? The court held: '[I]n this case, the employee was charged with dishonesty. LISTEN | Could Gerhard Ackermans conviction uncover more child sex abuse kingpins? In December 2012, Mr Ngcobo was assigned to work on a project with the Head of Basic Haematology Research Group and he was expected to work overtime. The fraud could be committed for the advantage of a friend or family member or could be a means towards gaining the perpetrator a job. Case No: JR 2186/17. The agency responsible for paying these grants has revealed the payment dates for the next year. She then transferred an amount of R1-million from the clients account into Dagumas account through various fraudulent transactions. Andre de Ruyter has spoken of corruption linked to the government and others at the utility and said Wednesday that unnamed sources who provided him with information feared for their lives. The money would later be shared. The optimisation of these skills is crucially important because: BY Ivan Israelstam, Chief Executive of Labour Law Management Consulting. All JSE data delayed by at least 15 minutes. THE LABOUR COURT OF SOUTH AFRICA, JOHANNESBURG JUDGMENT Reportable CASE NO: JR158/17 . PDF In the Labour Appeal Court of South Africa, Johannesburg An employer must be prepared to look beyond the conduct and consider the explanation provided by the employee during the investigation or at the disciplinary enquiry. Copyright Blue Sky Publications Ltd. All Rights Reserved. A domestic worker has been arrested on a fraud charge in Mpumalanga after she allegedly took photos of her employer's important documents, ostensibly to use it for criminal purposes. The moment that any serious allegations of misconduct are suspected or have been discovered against an employee is exactly when an employer must take action, said Hinxman. South Africa: Today's latest news and headlines, Tuesday, 2 May 2023 Celebrating World Book Day with trees and TikTok. This case cautions employers against charging employees with dishonesty simply because the employee has enjoyed some financial gain as a result of his or her misconduct. A 49-year-old general security manager has been arrested after he allegedly committed fraud to the value of R2.1 million in Potchefstroom in the North West, the Hawks said. Intention is everything: The role of intent in employee discipline for The Hawks investigation revealed that Daguma utilised some of the money to buy a Nissan NP200 (bakkie), which he sold for R120 000 on 9 June. Shongwe urged residents to be extremely cautious of helpers or domestic workers they employed. The death of Babita Deokaran, an employee of the health department in Gauteng province, already underlined the dangers for whistleblowers in South Africa. While fraud can occur at any level it is at its most dangerous at the upper levels of the organisation. A newsletter dedicated to the best conversations and comments on News24. In fact, the Global Economic Crime and Fraud Survey showed that 41% of economic crimes in South Africa were committed by employees, compared to only 36% by external fraudsters and 21% a collusion between the two. In the case of Drs Dietrich, Voigt and MIA v Bennet CM N.O CA 14/2016, the Labour Appeal Court confirmed that not all conduct that leads to financial benefit is nefarious. The CFTC charged South Africa-based Cornelius Johannes Steynberg with fraud in June 2022, alleging the "controlling person" at MTI accepted 29,421 BTC (valued at more than $1.7 billion at the time . By Ivan Israelstam, Chief Executive of Labour Law Management Consulting. The Directorate for Priority Crime Investigation, Tshwane: Heres your updated load shedding schedule for Tuesday, Daily devotion: Your bible verse and prayer for 2 May 2023, South Africa: Todays latest news and headlines, Tuesday, 2 May 2023, Load shedding on TUESDAY: Heres the UPDATED schedule, KwaZulu-Natal Weather: THUNDERSHOWERS and clouds TODAY, Gauteng Weather: Cool but mostly sunny day expected. ", Levels of public confidence in our law enforcement capabilities, not to mention the political will to hold criminals and the corrupt accountable, have dropped to an all-time low, Corruption Watch executive director Karam Singh said. He died in the hospital. At the time, the employee's previous. LISTEN | Thinking the unthinkable: What if Siya Kolisi cant make the World Cup? The employers strategy for combating employee fraud needs to be based on two broad approaches, namely, prevention and reaction. He explained that they were not submitted with an intention to deceive the employer because they were supported by time sheets which were approved by his manager. gunmen while traveling on one of South Africa's . (1) Any officer of Statistics South Africa who, in the course of his or her employment in terms of this Act. gunmen while traveling on one of South Africa's . Did You Know There Are Different Types Of Entrepreneurs? No matter the size of a business, fraud can have a significant impact on its reputation, operations and revenue, says Lucinda Hinxman, lead consultant of Employment & Labour at law firm CMS South Africa. stream That is the stern warning issued by UIF Commissioner Teboho Maruping, who has welcomed the recent conviction of a couple who cheated the UIF's Covid-19 Temporary Employer-Employee Relief Scheme (Covid-19 TERS) out of more than R10 million. Mlangeni and Daguma were arrested on 5 June this year at their respective homes when warrants for their arrest were executed. The court, in executing this mandate, has developed broad sentencing principles known as the "triad of Zinn". Credit card fraud Giving business expense cards to employees is a great way to build trust and empower your staff with their responsibilities. This week Ivan Israelstam explains how a CCMA Arbitrator dealt with a dismissal where an employer mistakenly thought that an employee could "dismiss themselves" - and exactly what the mistake cost the employer. After killings, calls to protect S. Africa's whistleblowers This illustrates the urgent need for employers to make improvements to their evidence preparation skills and labour law expertise. "The complainant reported that she got information that her 26-year-old employee has photos of her documents [ID, bank card and an actual photo] on her (the suspect) cellphone. PRECCA creates a general offence of corruption that is broadly defined. At what age did you start saving for retirement. Thokozani Percy Skosana, 42, was a former employee of the Department of Labour and worked in the Unemployment Insurance Fund (UIF) sector. PDF THE LABOUR COURT OF SOUTH AFRICA, JOHANNESBURG JUDGMENT Reportable CASE CFTC Fines South African More than $3.4 Billion In Largest Bitcoin For more information please contact Thabang Rapuleng at [emailprotected] or Tamsanqa Mila at [emailprotected], Article published with the kind courtesy of Cliffe Dekker Hofmeyr www.cliffedekkerhofmeyr.com. In 2020 the Fund embarked on the follow the money project was close to R 900 million was recovered. Millions of unemployed individuals benefit from the Social Relief of Distress grant every month. Podcast series: click here to find them all. To prove fraud, the. What are the procedures you need to follow? The annual International Fraud Awareness Week last November highlighted an increasing problem that organisations around the world are . They face charges of theft and fraud in the awarding of PPE contracts. Employers tend to charge employees who have received financial gain from misconduct with dishonesty or fraud even in cases where the benefit can be attributed to human error or negligence. The employee "self-dismissal" was found to be both procedurally and substantively unfair. PODCAST | Consexual with Dr Eve: Weak erections and dissatisfaction, how to treat erectile PODCAST | Consexual with Dr Eve: Is sexting cheating? This material may not be published, broadcast, rewritten or redistributed. We pay cash for videos. Fraud is a criminal charge and has criminal elements to prove. In addition, he had claimed payment for time that he was not at the workplace in that there were 13 instances where he had failed to clock out during lunch break thus representing an incorrect reflection of his actually hours worked. But, they all contribute to the economy and create jobs. Employers cannot simply to decide to dismiss an employee on the word of an external party - without following any internal procedures. This must represent a turning of the tide for our country.. x\]o}0d"`}^RAYmXS=%PSUjozt9=}{p}{/S^'Gy\R~G74w{[zSSnnSs~ 2023 (3.0.23103.7) 24.com. As shown in the Rope Constructions case reported later in this article, even apparent frauds discovered by employers may go unpunished because of lack of proof that the accused was in fact the fraudster. A US judge ordered a South African executive to pay more than $3.4 billion in restitution and fines for a fraud scheme involving Bitcoin the highest-ever civil monetary penalty in any US . Using comment sections to post about or comment on closed threads will result in that section being closed to further posts. The commissioner appeared to believe that the employee had made an error by completing the form. 11 May 2023 (09:00 - 15:30) Interactive Online Course, 12 May 2023 (08:30 16:00) Interactive Online Course, 17 & 18 May 2023 (08:30 - 16:00) Interactive Online Course, 19 May 2023 (08:30 - 16:00) Interactive Online Course, 19 May 2023 (09:00 - 11:30) Interactive Online Presentation, 25 May 2023 (08:30 - 16:00) Interactive Online Course, 25 May 2023 (09:00- 16:00) Emperors Palace: Convention Centre, 01 June 2023 (08:30- 16:00) Emperors Palace: Convention Centre, 01 June 2023 (09:00 - 12:00) Interactive Online Course, 08 June 2023 (09:00 - 16:00) Interactive Online Course, 08 June 2023 (08:30- 16:00) Emperors Palace: Convention Centre, 09 June 2023 (09:00 - 13:00) Interactive Online Course, 14 June 2023 (09:00 - 15:30) Interactive Online Course, 22 June 2023 (08:30 - 16:00) Interactive Online Course, 22 June 2023 (09:00- 16:00) Emperors Palace: Convention Centre, 06 July 2023 (08:30 - 16:00) Interactive Online Course, The OHS Act and the Responsibilities of Management Course, Human Resources Management (HRM) Metrics and HRM Scorecards, Compensation for Occupational Injuries and Diseases Course, Health and Safety Representative and Committee Training Course, Employment Equity Committee Training (Emperors Palace), The OHS Act and the Responsibilities of Management Course (Emperors Palace), The Labour Court Review Application Process Simplified, Compensation for Occupational Injuries and Diseases Course (Emperors Palace), Mastering Human Lie Detection for a Thriving Workplace, Managing Day-to-Day Challenges in the Workplace, HIRA Hazard Identification and Risk Assessment Course, Managing Day-to-Day Challenges in the Workplace (Emperors Palace), Incident Investigation of Work-Related Injuries and Diseases Course, Mashishing Labour Centre closes due to theft of electrical connections, Displaying Compulsory Wall Charts in the Workplace. PRECCA also imposes a statutory reporting obligation in instances where suspicion exists . READ |Man found guilty on 280 counts of fraud after card cloning crime spree across Western Cape. Legal officials, public supporters, and his associates demanded . Employee fraud: 6 examples & how to avoid them - Spendesk He said he testified out of a sense of civic duty but was not offered any protection despite the important evidence he provided and will not return to his home country unless his safety is guaranteed. South Africa's Department of Justice did not respond to messages seeking comment on Williams' experience and the general policy on protection for whistleblowers. Many universities in South Africa are now taking applications for the 2024 academic year, here's a list of them and how you can apply. PDF In the Tax Court of South Africa Held at Durban Copyright 2023 by The Associated Press. However, there must be some evidence before the Special Court that he was so satisfied, otherwise there is no displacement of the immunity conferred on the taxpayer by the proviso to s 79(1) and the opening words of para. Financial Implications For Employers Who Lose Unfair Discrimination Matters, How To Register Your Company For UIF & CF Using BizPortal. For example, employers often get trapped into levelling an allegation of fraud against an employee. Attacks on BusinessTech, its journalists or other users will result in a ban. This week ivan Israelstam deals with cases where this has happened. This means that those frauds, for which employees have been caught are likely to be only the tip of the iceberg. %PDF-1.7 However, joint efforts by the UIFs investigators, law enforcement agencies at the Fusion Centre such as the HAWKS, National Prosecuting Authority (NPA), and the Financial Intelligence Centre (FIC) led to the couples successful arrest and conviction. An employer is legally able to suspend an employee without informing them of the nature of the allegations. A government health department employee who warned of illegal dealings worth nearly $50 million was shot 12 times in the driveway of her home. The procedural requirements which employers must meet are that an investigation must be held; employees must be notified of the allegations against them using language they can reasonably understand; employees must be able to respond to the allegations, and be given a reasonable amount of time to prepare such response whereafter an independent decision-maker must decide whether the employee has acted as alleged and whether dismissal is appropriate. Remembering that the fraud began in 2012, Skosana was in and out of court. No one has been arrested in the killings, which police said had the hallmarks of a professional hit. Address: Riverbank House, 1 Putney Bridge Approach, London, SW6 4TJ. The company, previously known as Bosasa and now named African Global Holdings, was one of the most prominent subjects of the Zondo Commission a judicial inquiry into government and other high-level corruption during the 2008-2019 presidency of Jacob Zuma, who is on trial on separate corruption allegations. Employers sometimes know that misconduct has definitely taken place, but the employer cant pinpoint the actual culprit/s. But in his State of the Nation Address this year, President Cyril Ramaphosa acknowledged shortcomings and the need to strengthen the witness protection unit. Invest in the future today. Riebeek-Kasteel pupils get swimming lessons in NSRI shipping WATCH | 10 000 Rwandan women help fight against malaria, and can earn a wage doing it, Predict the winners of two FA cup semi-final ties and you could WIN with Edgars, Energy access will be a key discussion point at Enlit Africa, Flexibility, technology and not wasting a crisis: Tips for future-proofing business.
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employee frauds cases south africa