Question NW2323 to the Minister of Trade, Industry and Competition

Reply:

The CEO of the NRCS, Mr Mamaditse, has provided the Department of Trade, Industry and Competition (the dtic) with the following information.

a) “Full Details of the Fraud Case:

There was fraud committed amounting to R4 501,488.21. The employee processed fraudulent refunds. The NRCS receive funds from clients for services rendered or levies. In some instances, the clients fail to indicate or include the correct reference number. These funds are treated as unallocated until they are traced and allocated to the correct client account. The employee allocated some of these funds to third parties with the intention to refund them to these fraudulent clients that were not the respective depositors of the funds. The wrongly allocated funds were subsequently refunded to third parties that were not the depositors of the said funds, thereby defrauding the NRCS.

Disciplinary Against the Implicated Employee:

The NRCS has initiated a disciplinary action against the implicated employee and the disciplinary process is still in progress. The disciplinary process against the employee commenced on the 15th of March 2021. Subsequently thereto the NRCS appointed Initiator of the disciplinary process passed on due to COVID 19 and another Initiator has now been appointed. The matter sat again on 14th of September 2021 and employee representative fell ill during the proceedings and matter was postponed to and proceeded on the 14th and 15th October 2021. Matter was further adjourned to the 18th and 19th of November 2021.

b) Who was involved?

Position: Accounts Receivable Manager

Employee Name:

c) A criminal case was opened on the 25th of March 2021 at Sunnyside Police Station and was transferred to the Commercial Crimes Unit on the 12th of April 2021. The respective case number is: CAS 685/3/2021.”

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