The Court additionally ordered him to pay the spent money back to the department. It's that time of the year, applications season. Security breaches took a heavy toll on the industry, whose losses to online payment fraud were estimated at 20 billion U.S. dollars that year. endobj The money would later be shared. All JSE data delayed by at least 15 minutes. Moroko Moremi, 37, and his wife Treasure Moremi, 34, were recently found guilty of fraud by the Pretoria Specialised Commercial Crimes Court. Credit card fraud Giving business expense cards to employees is a great way to build trust and empower your staff with their responsibilities. x\]o}0d"`}^RAYmXS=%PSUjozt9=}{p}{/S^'Gy\R~G74w{[zSSnnSs~ The court held: '[I]n this case, the employee was charged with dishonesty. He was found guilty and he was dismissed on 10 April 2014. LISTEN | Thinking the unthinkable: What if Siya Kolisi cant make the World Cup? These are distinctly different reasons, and each has a distinctly different procedure to achieve a legally compliant dismissal. It might be argued that this was a type of fraud in the sense that he would have gained from it by dishonestly avoiding having to do the work necessary to complete the sample check. 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. Employers sometimes know that misconduct has definitely taken place, but the employer cant pinpoint the actual culprit/s. US Court Orders South African Firm's CEO to Pay $3.4 Billion for For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. JOHANNESBURG (AP) An accountant working on a high-profile corruption case was killed along with his son by unknown gunmen while traveling on one of South Africa's main highways. gunmen while traveling on one of South Africa's . THE LABOUR COURT OF SOUTH AFRICA, JOHANNESBURG. committing fraud and concluding that his dismissal was substantively fair. Posts that attempt to bypass word filters will be deleted. The alleged criminal and unlawful activities involve elements that are best characterized as organized crime, de Ruyter said. Choose from our range of newsletters to get the news you want delivered straight to your inbox. This leaves the door open to severe consequences arising, which may be compounded by a delayed and disorganised response.. The fact is that the employee committed serious misconduct, including dishonesty, fraud and bringing the companys name into disrepute. Police have arrested two more suspects in the Thabo Bester prison escape case. HZv , f ``d1ut0G4v4 ,(KEYY}XX,X3{0?e^q9dg] $-wb@@6@,H0B1 A[ endobj On review, the Labour Court upheld the decision of the commissioner. Shongwe said over the years, the police have been inundated with complaints of people who have been robbed of huge amounts of money. Williams is a former partner at consultancy firm Bain & Co, which he also accused of in his allegations regarding the tax authority. An employee is caught committing fraud in South Africa - BusinessTech Invest in the future today. "For example, employers often get trapped into levelling an allegation of fraud against an employee. Never miss a story. Oops! All Rights Reserved, Department of Health's Covid-19 online resource and news portal. This is not what was envisioned by the current LRA which aimed rather to de-formalise the disciplinary enquiry and move away from a system similar to that used in criminal cases including a shift away from a criminal language such as being charged or being found guilty or not guilty, she said. PwC's Global Economic Crime and Fraud Survey 2022 Millions of people living in South Africa rely on grants from Sassa. hb```RO@(1 WRo0 n6nozn>v^ki)@],upAm (;W#fN- The company led clear evidence that it had lost trust in him. Mlangeni and Daguma were arrested on 5 June this year at their respective homes when warrants for their arrest were executed. 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. THE LABOUR COURT OF SOUTH AFRICA, JOHANNESBURG JUDGMENT Reportable CASE NO: JR158/17 . 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. Copyright Blue Sky Publications Ltd. All Rights Reserved. 0 For more information about how we protect your personal information, click here, As its name suggests, Labour Guides websites are intended for guidance, or otherwise information, purposes only. Millions of unemployed individuals rely on the governments social support grant, and this monthly financial support is associated with positive effects on poverty and inequality. 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. is guilty of an offence and liable on conviction to a fine not exceeding R10 000, or such higher amount as is determined from time to time by the Minister of Justice as contemplated in section 1 (1) (a) of . Invest in the future today. Collins Concise Dictionary defines fraud as deliberate deception, trickery or cheating intended to gain an advantage. Working together with law enforcement agencies, we will follow every lead pointing towards suspected fraud. 335 0 obj <>stream Currently, disciplinary enquiries are held as extremely formal affairs, where those involved will sit down together in a tribunal manner. PODCAST | Consexual with Dr Eve: Weak erections and dissatisfaction, how to treat erectile PODCAST | Consexual with Dr Eve: Is sexting cheating? UIF opens fraud case against NPO | SAnews BREAKING NEWS LIVE | More arrests in Thabo Bester escape case. However, such gain would not have to be confined to direct financial advantage. "The supervisors allegedly recruited about 56 ghost employees who were paid approximately R5 000 per month. Buying dead bodies and other insurance scams hit South Africa "Failure to do so could result in huge losses and even endanger their lives or that of their families.". Her August 2021 slaying was described as an assassination. Thereafter you will be billed R75 per month. The ombud investigated more than 2,880 banking fraud related cases last year, an increase of 7.5% from 2020. CFTC Fines South African More than $3.4 Billion In Largest Bitcoin 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 . Can Employers Retrench Employees For Poor Performance? However, employers may need to begin to rethink their idea of what an enquiry should look like, while still meeting the procedural fairness required in terms of the Labour Relations Act (LRA), particularly as the Covid-19 pandemic and remote work have changed the work environment.. LISTEN | ESKOM DIRTY DOSSIER: Andr De Ruyter, the apartheid spy and the R50m off-the-books snoop. 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. PRECCA also imposes a statutory reporting obligation in instances where suspicion exists . Shongwe said according to the employer, she received a tip-off from someone who was adamant the suspect had already given her information to someone who later used it for criminal purposes. All rights reserved. Hawks spokesperson Colonel Katlego Mogale said the man allegedly approached area supervisors working around North West to start recruiting "ghost employees". <> 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. ", 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. A newsletter dedicated to the best conversations and comments on News24. Employees have access to highly experienced and skilled trade union officials to represent them at CCMA. It will be suspended if the defendant does not break the law during that specific period, and fulfills the agreement for him to pay back the money on time. South African CEO Ordered to Pay a Record $3.4B in CFTC Bitcoin Forex South African anti-corruption organization Corruption Watch said the killings of the Murrays was further evidence that the country faced a crisis in terms of the rule of law. 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 . The compensation fund is a public entity under the administration of the Department of Labour. 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 Hawks spokesperson Colonel Katlego Mogale said the man allegedly approached area supervisors working around North West to start recruiting "ghost employees". LISTEN | Could Gerhard Ackermans conviction uncover more child sex abuse kingpins? 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. 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. (1) Any officer of Statistics South Africa who, in the course of his or her employment in terms of this Act. This week, Ivan Israelstam explains the legally distinct reasons for dismissal: for misconduct, for poor work performance, and for operational requirements. Intention is everything: The role of intent in employee discipline for BREAKING NEWS LIVE | More arrests in Thabo Bester escape case. What's your take on the South African nationals trapped in conflict-ridden Sudan? The Prevention and Combating of Corrupt Activities Act ( PRECCA) is South Africa's main anti-bribery and anti-corruption legislation and is akin to the United Kingdom's Bribery Act. He may be contacted on (011) 888-7944 or 0828522973 or on e-mail address: ivan@labourlawadvice.co.za. "Fraud" is a criminal charge and has criminal elements to prove. %PDF-1.5 % hXmo6+pw@.uvAD# At the arbitration the employer was unable to convince the commissioner that the employee had completed the form for reasons of fraud. In South Africa, sentencing is considered the primary prerogative of trial courts, which enjoy wide discretion to determine the type and severity of a sentence on a case-by-case basis. 1 0 obj <>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Below, Hinxman shared some insights into key questions you might have as an employer when taking action against employees suspected or alleged of having committed fraud. 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. During 2012, now seven years ago, he fraudulently started a company named Simajale Transport and General Dealer. She was shot multiple times inside her car soon after dropping her daughter off at school and her story has become a rallying call. BY Ivan Israelstam, Chief Executive of Labour Law Management Consulting. There have been many judgments, over the years (both in South Africa and abroad), which have developed the policy and principles applied in such matters. 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. Carlson said he had no doubt there was fraud in the 2020 election, but said Trump and his lawyers had so discredited their case - and media figures like himself - "that it's infuriating . 2 0 obj 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. Where possible, people should use employment agencies to source helpers. On appeal, the employer argued that the employee was guilty of dishonesty and not negligence because during the arbitration proceedings, the employer had shown that the employee had deliberately submitted false claims. PDF THE LABOUR COURT OF SOUTH AFRICA, JOHANNESBURG JUDGMENT Reportable CASE Mogale said it reportedly happened between 2019 and 2020. 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. At the CCMA, Mr Ngcobo challenged the substantive fairness of his dismissal. You can cancel anytime and if you cancel within 14 days you won't be billed. The latest conviction is against the backdrop of a recent court appearance of two suspects at the Pretoria Specialised Commercial Crimes Court after they received R2,7 million from the UIF, but allegedly failed to use the money in line with the Memorandum of Understanding (MOU) signed with the UIF. "The suspect allegedly received undue payments of approximately R2.1 million over a period of twelve months," she said. A convenient time and It provides cover to workers injured and/or who contract diseases at work. Comments will be closed 24 hours after the article is published. Some of the 15 counts of fraud include corruption, 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. 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. endstream endobj 296 0 obj <>/Metadata 46 0 R/Outlines 72 0 R/PageLayout/OneColumn/Pages 290 0 R/StructTreeRoot 81 0 R/Type/Catalog>> endobj 297 0 obj <>/ExtGState<>/Font<>/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 298 0 obj <>stream 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. In times of uncertainty you need journalism you can trust. 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. By Ivan Israelstam, Chief Executive of Labour Law Management Consulting. They are scheduled to be sentenced on 17 May 2022. uzs^Ksl:ggo]]H}e]=&3s{u:>S}G:?1>$A2zz?0zBan'7. Nowhere does the LRA speak of the formal disciplinary enquiry that we have come to love and hate.. US court orders South African firm's CEO to pay $3.4 bln for bitcoin fraud This time can be equated to the golden hour, a period immediately following the commission of an offence when evidence is abundant and readily available to investigators, she said. Feature: Internal fraud - Who commits it and why? - Accountancy SA 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. The temptation is to dismiss every employee, who may have possibly been involved. This week Ivan Israelstam explains that labour law does allow an employer to dismiss an employee. In times of uncertainty you need journalism you can trust. Despite confirmation of fraud, the Arbitrator directs that the Employees should be reinstated together with backpay based on one factor, . 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, Foreign nationals nabbed by Hawks and FBI for romance scam face extradition to the US. WhatsApp 060 011 021 1. 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). Go to: www.labourlawadvice.co.za. which confirms that employees committed fraud. Murray was shot in the head while driving with his son in an SUV on the N1 highway just outside Johannesburg in March. 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. To prove fraud, the employer must be able to prove misrepresentation, unlawfulness, actual or potential prejudice and intention. Go to: www.labourlawadvice.co.za. In view of this and due to the fact that the employee had not been given the opportunity to cross examine his accusers the commissioner found the dismissal to be unfair and ordered the employer to reinstate the employee with back pay. According to Sekgotodi, Skosana was sentenced to three years in prison and wholly suspended for five years. Celebrating World Book Day with trees and TikTok. 18. An employer is legally able to suspend an employee without informing them of the nature of the allegations. As per the case law above, the parity principle is a factor that has . 295 0 obj <> endobj The court, in executing this mandate, has developed broad sentencing principles known as the "triad of Zinn". a) thereof. . Williams testified before the Zondo Commission implicating about 39 parties in corrupt activities at the countrys tax authority, the South African Revenue Service. . The employee "self-dismissal" was found to be both procedurally and substantively unfair. At what age did you start saving for retirement. Without any assurance for my safety from our government, combined with the fact that none of the parties I implicated have been prosecuted, it is unlikely that I can return. Employees have access to highly experienced and skilled trade union officials to represent them at CCMA. Two arrested for R14 million PPE corruption at the NHLS He may be contacted on (011) 888-7944 or 0828522973 or on e-mail address: ivan@labourlawadvice.co.za. Copyright 2023 by The Associated Press. Photo credit: Image by Mohamed Hassan from Pixabay. The optimisation of these skills is crucially important because: BY Ivan Israelstam, Chief Executive of Labour Law Management Consulting. What are the procedures you need to follow? After killings, calls to protect S. Africa's whistleblowers It is the lowest form of unethical behavior to ask a citizen to risk their life for our country and then not offer them protection when they face retaliation.. Employment and Labour welcomes latest conviction of a couple for - Gov Go to: www.labourlawadvice.co.za. 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. Grants are paid out based on a grant payment schedule. 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. hbbd``b`SA* zHX@L? Our offices are for administrative purposes only, no visitors will be accepted without an appointment. All JSE data delayed by at least 15 minutes. 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. The legal procedures that an employer is required to follow in implementing dismissals for misconduct, retrenchments and poor work performance are all different. In order to prove fraud the employer must show that the accused employee was the one who committed the act and that he/she did so for gain. TheSouthAfrican.com is all about South Africa and the stories that affect South Africans, wherever they are in the world. A former Labour Department employee was convicted and sentenced on Monday 4 November at the Witbank Regional Court for 15 counts of fraud. All rights reserved. Crime counted a total of 1,971 assassination cases in South Africa between 2000 and 2021, with whistleblowers accounting for many . The courts sentenced him to 5 years in prison. 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. The agency responsible for paying these grants has revealed the payment dates for the next year. 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. 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. He died in the hospital. What are examples of workplace fraud and how is it proved? - Skills Portal The annual International Fraud Awareness Week last November highlighted an increasing problem that organisations around the world are . They were consequently charged with just over 80 counts of fraud, which includes theft and money laundering. Thokozani Percy Skosana, 42, was a former employee of the Department of Labour and worked in the Unemployment Insurance Fund (UIF) sector. A new wave of fraud is targeting bank customers and the number of people falling victim . Did You Know There Are Different Types Of Entrepreneurs? Reaction involves taking seriously all reports or hints of irregularities, swift action and, above all, building a cast iron case against the accused. The information on this website does not constitute legal advice. Buying a home: Are deposits still needed? South Africa Blue Sky Publications (Pty) Ltd T/A TheSouthAfrican Number: 2005/028472/07. "Leader of A Movement:" During a Turbulent Time - Garvey by Corn van Zyl 02-05-2023 05:30 Nothing in any of Labour Guides websites is to be considered as rendering legal or professional advice. The good news is that you can apply for an IEB matric rewrite. Domestic worker arrested for fraud for allegedly taking photos of They appeared in the Harrismith Magistrates Court and were granted R5 000 each, pending further investigation. This week ivan Israelstam deals with cases where this has happened. TheSouthAfrican.com is all about South Africa and the stories that affect South Africans, wherever they are in the world. Prevention involves the principle of trusting nobody and the implementation of comprehensive safeguards. This must represent a turning of the tide for our country.. Although we take great care to ensure that the information on our website is accurate and up to date, readers are advised to always consult with a Labour Law Practitioner before acting on the information. . endobj With a continuing remote work environment, instances of misconduct have become much more exposed, as the checks and balances businesses have put in place to ensure that working from home is safe and secure, have brought increased oversight into business and employee operations, Hinxman said. This post explores six common types of employee fraud: Credit card fraud Expense report fraud Payroll fraud Bribery Data theft Accounting fraud Here's how each may affect your business, and how to respond. The survey went on to say that South African organisations reported that senior and middle management commit 77% of all internal fraud and that the profile of the typical fraudster is; Male Aged between 31 and 40, Has worked for his employer for more than 10 years Has acquired a university degree. The proceeds of the sale were then deposited into Mazibukos account, who in turn allegedly withdrew it and gave it to Daguma in cash, police spokesperson Warrant Officer Lynda Steyn said. Through this company, he registered ghost employees so that he could claim UIF benefits on their behalf, when in fact it was going into his pocket. Media enquiries:Makhosonke ButheleziCell:071 491 7236, Copyright 2023 Government of South Africa. To book for our 7 June seminar in Johannesburg on CHAIRING DISCIPLINARY HEARINGS please contact Ronni via [emailprotected] or 0845217492. This week, the Commodity Futures Trading Commission took aim at a South African individual in the largest Bitcoin fraud case under the regulator's purview, resulting in more than $3.4 billion in . The Directorate for Priority Crime Investigation (Hawks) pursued the case after it was reported. 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.
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