The Passenger Rail Agency of South Africa (Prasa) says it has bolstered its internal controls in efforts to curb fraud after an employee in their finance department was fired for alleged involvement in fraudulent activities.
According to the entity, during routine financial review processes, irregular payments were detected, prompting escalation to senior leadership.
In a statement, Prasa said that their internal audit department and management engaged an independent supplier to conduct a forensic investigation.
“The investigation revealed three fraudulent transactions executed by a Prasa employee totalling R9 547 000. On being interrogated by the investigators, the employee admitted to committing the fraud and subsequently returned the stolen funds,” said Prasa.
Prasa management resolved to immediately suspend the employee after the alleged confession and lodged a case with the police.
It continued with the internal investigation and unearthed additional fraudulent transactions allegedly by the same individual amounting to R24 976 747.
The staff member was further interrogated and again allegedly confessed to these additional unauthorised transactions.
“As an outcome of the process, the employee was dismissed, and a fraud case against him is pending. The investigation helped pinpoint internal control deficiencies that enabled the fraud.”
Prasa said it was committed to dealing with fraud and has introduced enhanced measures to bolster internal controls and prevent future fraud.
“Prasa’s management remains committed to upholding integrity, transparency, and accountability. Going forward, the organisation will remain vigilant against potential financial irregularities,” it said.
Cape Times