Prasa dismisses employee because of fraud. Image: Twitter/Prasa_Group
PRASA fights fraud: Employee dismissed amidst R34 million scandal
PRASA remains committed to combating fraud, evident in terminating an employee allegedly involved in illicit activities.
Prasa dismisses employee because of fraud. Image: Twitter/Prasa_Group
The Passenger Rail Agency of South Africa (PRASA) stands firm in its resolve to combat fraud, as demonstrated by the recent termination of an employee allegedly engaged in illicit activities.
In response to the detection of irregular payments during routine financial reviews, the company elevated the matter to senior leadership, initiating a forensic investigation conducted by an independent supplier with the support of the Internal Audit department.
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How many fraudulent transactions by the PRASA employee?
The investigation brought to light three fraudulent transactions orchestrated by the implicated PRASA employee, amounting to R9 547 000.
Subsequent to admission of guilt during interrogation, the employee promptly reimbursed the embezzled funds. PRASA took swift action, suspending the employee and involving the South African Police Services (SAPS).
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Further internal scrutiny uncovered additional fraudulent transactions by the same individual, totaling R24 976 747.30. The implicated employee admitted to these unauthorised transactions during questioning. Consequently, the employee was dismissed, and legal proceedings for fraud are underway.
What else did the investigation reveal?
This comprehensive investigation not only led to the removal of the perpetrator but also identified internal control deficiencies that facilitated the fraud.
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“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 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,” the agency said.
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