Parliament, Wednesday, 13 November 2024 – The Acting Chairperson of the Select Committee on Economic Development and Trade, Mr Bones Modise, has said Postbank needed not to wait long to detect fraud that was being committed at the entity where millions of rands were siphoned out of the Postbank.
“It is unfortunate that Postbank system was exposed to outside criminality by employees who work for the state entities. The people that one least expects to undo the good work of the government become the same persons who frustrate that good work,” said Mr Modise.
He said this kind of fraud that clearly showed that government must apply a firm hand on thieves in the system who sometimes are dangerous to their colleagues who are able to identify these kinds of transgressions.
Post bank briefed the committee on forensic findings of the auditing firm KPMG investigations. The committee heard that sophisticated syndicates worked with a supplier and internal employees to rob Postbank millions of rands. The bank’s Chief Executive Officer, Ms Ntomboxolo Mbengashe, said the fraud occurred in four instances over a period of time.
Mr Modise said the committee welcomed the consequence management, and that some employees had been taken to task.
“But why did we wait until it came to this point; the system was compromised clearly, why did it get to a point where we lose R92 million? If a junior official had picked up these transgressions, what guarantee do they have that their lives would be safe.”
It hurts to see these kinds of presentation, but the committee supported Postbank existence and that it be turned into a fully-fledged bank. We are exciting that some work is being done,” asked Mr Modise.
He said it was important that officials put themselves in the shoes of beneficiaries when these things occurred. The committee supported consequence management against all internal employees found to be at fault.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE ACTING CHAIRPERSON OF THE SELECT COMMITTEE ON ECONOMIC DEVELOPMENT AND TRADE, MR BONES MODISE.
For media inquiries or interviews with the Chairperson, please contact the committee’s Media Officer:
Name: Mr Sibongile Maputi
Cell: 081 052 6060
Email: smaputi@parliament.gov.za
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