Vicarious liability of an employer when an employee commits an The court examined the test for reasonable person in the context of the workplace and held that the employee failed to act with the degree of care and standard expected of a person in his positio n. It assessed the evidence that was before the commissioner and held that the commissioners findings were reasonable. Are you an IEB learner looking to improve your matric results or unable to sit for the exams? Something went wrong, please try again later. For example, employers often get trapped into levelling an allegation of fraud against an employee. Then explains how one employer was able to successfully defend against an allegation of unfair discrimination, and another employer could not defend against a dismissal that was found to be an automatically unfair dismissal. Mr Ngcobo claimed overtime at an incorrect rate for a period of three months in July, November and December 2013 he had submitted claims at the rate of 1.5 per hour which was higher that his normal hour rate. 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. They also have fueled outrage over widespread graft linked to government contracts, which has plagued Africa's most developed economy for years but appears to continue unabated. What's your take on the South African nationals trapped in conflict-ridden Sudan? The Provincial Head of the Directorate For Priority Crime Investigation Mpumalanga Major General, Zodwa Mokoena applauded the Investigating and Prosecuting teams for the conviction. 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. Employees have access to highly experienced and skilled trade union officials to represent them at CCMA. 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. Something went wrong, please try again later. To date, there have been four convictions of individuals who have defrauded the UIF of Covid-19 TERS funds, and more are expected as 15 cases have been referred to the SIU for further investigation. South African CEO Ordered to Pay a Record $3.4B in CFTC Bitcoin Forex What is required to prove "fraud" in a disciplinary enquiry? He was found guilty and he was dismissed on 10 April 2014. The commissioner considered the evidence and held that the employer failed to prove that Mr Ngcobo had acted dishonestly and/or deliberately falsified his claims. 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. He has also claimed he survived an attempt on his life when his coffee was laced with cyanide. "Her passport details, banking information and daily routine, among others, were already given away," Mpumalanga Community Safety, Security and Liaison MEC Vusi Shongwe added. This week, Ivan Israelstam explains the legally distinct reasons for dismissal: for misconduct, for poor work performance, and for operational requirements. The domestic worker was arrested on Tuesday but has yet to appear in court. Nowhere does the LRA speak of the formal disciplinary enquiry that we have come to love and hate.. . Oops! The company, previously known as Bosasa and now named African Global Holdings, was one of the most prominent subjects of the Zondo Commission a judicial inquiry into government and other high-level corruption during the 2008-2019 presidency of Jacob Zuma, who is on trial on separate corruption allegations. The initial case against Mlangeni and Daguma is scheduled to be heard in the Bethlehem Regional Court on 11 September. 18. 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. Posts that attempt to bypass word filters will be deleted. This week Ivan Israelstam explains that labour law does allow an employer to dismiss an employee. Credit card fraud Giving business expense cards to employees is a great way to build trust and empower your staff with their responsibilities. We pay cash for videos. Offences and penalties. We pay cash for videos. Failure to do so properly can result in the dismissed employee being reinstated simply because the employer failed to prove the employees guilt at the CCMA or bargaining council. These are distinctly different reasons, and each has a distinctly different procedure to achieve a legally compliant dismissal. The commissioner appeared to believe that the employee had made an error by completing the form. WhatsApp 060 011 021 1. Employers cannot simply to decide to dismiss an employee on the word of an external party - without following any internal procedures. Those who have helped themselves to funds earmarked for workers during the lockdown should always remember that the law is creeping towards them and they will not have any peace. To date, there have been four convictions of individuals who have defrauded the UIF of Covid-19 TERS funds, and more are expected as 15 cases have been referred to the SIU for further investigation. At the arbitration the employer was unable to convince the commissioner that the employee had completed the form for reasons of fraud. However, it is important to note that an employee must be suspended on full pay. What are the procedures you need to follow? In 2020 the Fund embarked on the "follow the money" project was close to R 900 million was recovered. The good news is that you can apply for an IEB matric rewrite. Employers sometimes know that misconduct has definitely taken place, but the employer cant pinpoint the actual culprit/s. As such, many businesses may have put in place a number of measures to detect and prevent fraud from being committed against them by an outsider, she said. Copyright 2023 by The Associated Press. endstream endobj startxref 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 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. 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. In December 2012, Mr Ngcobo was assigned to work on a project with the Head of Basic Haematology Research Group and he was expected to work overtime. Amongst others, the MOU requires that the Covid-19 TERS monies must be paid over to the qualifying workers applied for. This helps to safeguard the integrity of the investigation, any evidence, as well as any potential witnesses, said Hinxman. Currently, disciplinary enquiries are held as extremely formal affairs, where those involved will sit down together in a tribunal manner. However, for the same misconduct, the allegation of misappropriation of funds could be used which has less of a burden of proof did the employee take the money without an authorisation? They were consequently charged with just over 80 counts of fraud, which includes theft and money laundering. Police have arrested two more suspects in the Thabo Bester prison escape case. There are always exceptions in the cases, but employers are well-advised to follow the standard methods for each circumstance. READ |Man found guilty on 280 counts of fraud after card cloning crime spree across Western Cape. Choose from our range of newsletters to get the news you want delivered straight to your inbox. LISTEN | ESKOM DIRTY DOSSIER: Andr De Ruyter, the apartheid spy and the R50m off-the-books snoop. <> They face charges of theft and fraud in the awarding of PPE contracts. The Global Initiative Against Transnational Organised Crime counted a total of 1,971 assassination cases in South Africa between 2000 and 2021, with whistleblowers accounting for many of the . Rapid response in these situations can help employers avoid the possibility of losing out on valuable information or destruction of key evidence as a result of inappropriate handling of processes or inadvertently tipping off a suspect.. 318 0 obj <>/Filter/FlateDecode/ID[<9CAA0A4E796A6F41B6B6610C6B7604F8><8C9E643D68FAF54AB172E07245A689B9>]/Index[295 41]/Info 294 0 R/Length 106/Prev 265888/Root 296 0 R/Size 336/Type/XRef/W[1 2 1]>>stream Shongwe said over the years, the police have been inundated with complaints of people who have been robbed of huge amounts of money. The project is expected to resume in April 2022 upon the appointment of audit firms and it is anticipated that additional recoveries will be made, and more arrests will take place as fraudulent claims are uncovered. 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. All rights reserved. The employer suffered a loss of R8,647.60 as a result of the employees conduct. Podcast series: click here to find them all. He may be contacted on (011) 888-7944 or 0828522973 or on e-mail address: ivan@labourlawadvice.co.za. Go to: www.labourlawadvice.co.za. However, there must be some evidence before the Special Court that he was so satisfied, otherwise there is no displacement of the immunity conferred on the taxpayer by the proviso to s 79(1) and the opening words of para. It's that time of the year, applications season. Collins Concise Dictionary defines fraud as deliberate deception, trickery or cheating intended to gain an advantage. Address: Regus Business Centre 1st Floor, Block B, North Park, Black River Park, 2 Fir Street, Observatory, Cape Town, 7925, South Africa Postal: Blue Sky Publications (Pty) Ltd T/A TheSouthAfrican, PO Box 44354, Claremont, 7735, South Africa, United Kingdom Blue Sky Publications Ltd Company Registration Number: 04683692. PRECCA also imposes a statutory reporting obligation in instances where suspicion exists . There are various types of entrepreneurs, and each type tends to make their own decisions depending on their personalities, skills, and environment. Entrepreneurs make big ideas turn into reality. He may be contacted on (011) 888-7944 or 0828522973 or on e-mail address: [emailprotected]. "The complainant reported that she got information that her 26-year-old employee has photos of her documents [ID, bank card and an actual photo] on her (the suspect) cellphone. She then transferred an amount of R1-million from the clients account into Dagumas account through various fraudulent transactions. The Unemployment Insurance Fund in South Africa ensures that workers can access short term financial relief if they require it, by asking employers to contribute towards the Fund. 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. Employers need to understand that legally, where they wish to infer that an employee committed fraud, they must at least be able to prove that the false act could not have been carried out in error. 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. 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. A former Labour Department employee was sentenced on4 November 2019 for 15 counts of fraud in Mpumalanga, dating back to 2012. <> Unforeseen circumstances that lead to a loss of income can be devastating for many people. In June 1923, the United States government charged, tried, and convicted Marcus Mosiah Garvey (1887-1940) - National Hero of Jamaica, political activist, and movement leader - of mail fraud for allegedly selling stock of his own shipping and passenger company, the Black Star Line. Please enter your email address. A new wave of fraud is targeting bank customers and the number of people falling victim . % The alleged criminal and unlawful activities involve elements that are best characterized as organized crime, de Ruyter said. This was after the couple, who are directors of Denmeng Trading, applied for Covid-19 TERS for 553 workers when they only employed 22. Employment and Labour welcomes latest conviction of a couple for - Gov Journalism strengthens democracy. 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. 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. The ombud investigated more than 2,880 banking fraud related cases last year, an increase of 7.5% from 2020. 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. Two employees who were dismissed by G4S have been arrested in connection with the Thabo Bester escape case. South Africa: Bribery & Corruption - Norton Rose Fulbright READ |Foreign nationals nabbed by Hawks and FBI for romance scam face extradition to the US. Thokozani Percy Skosana, 42, was a former employee of the . All JSE data delayed by at least 15 minutes. PDF In the Tax Court of South Africa Held at Durban He agreed to be paid at a rate of 1.0 per hour (his normal hourly rate). The man was arrested in the early hours of Wednesday by the serious corruption investigation unit and was expected to appear in the Potchefstroom Magistrates Court to face charges of fraud and money laundering. 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. At what age did you start saving for retirement. 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. LISTEN | Thinking the unthinkable: What if Siya Kolisi cant make the World Cup? "Fraud" is a criminal charge and has criminal elements to prove. Buying a home: Are deposits still needed? Hawks spokesperson Colonel Katlego Mogale said the man allegedly approached area supervisors working around North West to start recruiting "ghost employees". 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 . Another arrest in fraud case involving Standard Bank employee For more information please contact Thabang Rapuleng at [emailprotected] or Tamsanqa Mila at [emailprotected], Article published with the kind courtesy of Cliffe Dekker Hofmeyr www.cliffedekkerhofmeyr.com. Journalism strengthens democracy. A government health department employee who warned of illegal dealings worth nearly $50 million was shot 12 times in the driveway of her home. Spokesperson for the Mpumalanga Hawks, Captain Dineo Lucy Sekgotodi said: Nobody could count how many court appearances he has made over the years.. The optimisation of these skills is crucially important because: BY Ivan Israelstam, Chief Executive of Labour Law Management Consulting. Shongwe urged residents to be extremely cautious of helpers or domestic workers they employed. You will receive mail with link to set new password. %PDF-1.5 % In either instance, a capable chairperson will be able to recognise that an employer is not a legal representative and can identify the true misconduct of the employee.. The court held: '[I]n this case, the employee was charged with dishonesty. He advised communities to avoid carrying large sums of cash but to rather share the dividends by doing electronic transfers. He died in the hospital. The Court additionally ordered him to pay the spent money back to the department. 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. 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. <>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Did You Know There Are Different Types Of Entrepreneurs? Remembering that the fraud began in 2012, Skosana was in and out of court. In relation to the second charge, Mr Ngcobo also explained that the claims submitted at the rate of 1.5 per hour were made in error. The slayings and other cases have anti-corruption groups urging South African authorities to provide far better protection for whistleblowers. JOHANNESBURG (Reuters) - South African retailer Steinhoff said an independent report had found it had overstated profits over several years in a $7.4 billion accounting fraud involving a small. Our offices are for administrative purposes only, no visitors will be accepted without an appointment. It remains increasingly important that businesses fight fraud and corruption by understanding when and how to process any allegations that come forward while remaining cognisant of the employee and employer rights., Read: The new Covid-19 legal case that South African workers should know about, An employee is caught committing fraud in South Africa heres what happens next, The new Covid-19 legal case that South African workers should know about, Crossover SUVs you can get in South Africa for R10,000 a month, South Africans are having to rent out parts of their homes heres why, You need to stop using your phone on the toilet, Unleash fast wifi everywhere: Upgrade your wifi experience with a mesh system, Business Talk Establish your company as a market leader, Wingu Academy and The Angela Academy join forces to provide high-tech schooling to underprivileged communities in South Africa, SARS is coming after these wealthy taxpayers, Lower stages of load shedding planned for this week heres the new schedule, Silver lining for South Africas property market, This new work trend causing headaches for businesses in South Africa, 3 ways South Africans can acquire citizenship in another country, Compelling ways to diversify and grow your retirement pot. TheSouthAfrican.com is all about South Africa and the stories that affect South Africans, wherever they are in the world. The information on this website does not constitute legal advice. 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 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. As per the case law above, the parity principle is a factor that has . 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. Ramaphosa and Mfeleng were found guilty on ten counts of money laundering and fraud, and Methi was found guilty on three counts of the latter. As the most recent example, the brazen murder of Cloete Murray and his son sends a chilling and intimidating message to anyone seeking to end impunity for corruption and crime. In this instance intention to Mr Ngcobo was charged with dishonesty and/or falsification of overtime claims. Case against SARS accomplice postponed for a further pre-trial. Thorough background checks should be made of people we hire in our houses, whether they are local or foreign nationals. Sometimes, employees may have a reasonable explanation, and in such cases, a dismissal is not the appropriate sanction. The pair, aged 32 and 57, are expected to appear in the Palm Ridge Specialised Commercial Crimes Court on Monday. Mlangeni and Daguma were arrested on 5 June this year at their respective homes when warrants for their arrest were executed. The death of Babita Deokaran, an employee of the health department in Gauteng province, already underlined the dangers for whistleblowers in South Africa. which confirms that employees committed fraud. At the CCMA, Mr Ngcobo challenged the substantive fairness of his dismissal. This must represent a turning of the tide for our country.. @b@b BDiSMW`@J& @BqH#> pZ 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). 1. 11 May 2023 (09:00 - 15:30) Interactive Online Course, 12 May 2023 (08:30 16:00) Interactive Online Course, 17 & 18 May 2023 (08:30 - 16:00) Interactive Online Course, 19 May 2023 (08:30 - 16:00) Interactive Online Course, 19 May 2023 (09:00 - 11:30) Interactive Online Presentation, 25 May 2023 (08:30 - 16:00) Interactive Online Course, 25 May 2023 (09:00- 16:00) Emperors Palace: Convention Centre, 01 June 2023 (08:30- 16:00) Emperors Palace: Convention Centre, 01 June 2023 (09:00 - 12:00) Interactive Online Course, 08 June 2023 (09:00 - 16:00) Interactive Online Course, 08 June 2023 (08:30- 16:00) Emperors Palace: Convention Centre, 09 June 2023 (09:00 - 13:00) Interactive Online Course, 14 June 2023 (09:00 - 15:30) Interactive Online Course, 22 June 2023 (08:30 - 16:00) Interactive Online Course, 22 June 2023 (09:00- 16:00) Emperors Palace: Convention Centre, 06 July 2023 (08:30 - 16:00) Interactive Online Course, The OHS Act and the Responsibilities of Management Course, Human Resources Management (HRM) Metrics and HRM Scorecards, Compensation for Occupational Injuries and Diseases Course, Health and Safety Representative and Committee Training Course, Employment Equity Committee Training (Emperors Palace), The OHS Act and the Responsibilities of Management Course (Emperors Palace), The Labour Court Review Application Process Simplified, Compensation for Occupational Injuries and Diseases Course (Emperors Palace), Mastering Human Lie Detection for a Thriving Workplace, Managing Day-to-Day Challenges in the Workplace, HIRA Hazard Identification and Risk Assessment Course, Managing Day-to-Day Challenges in the Workplace (Emperors Palace), Incident Investigation of Work-Related Injuries and Diseases Course, Mashishing Labour Centre closes due to theft of electrical connections, Displaying Compulsory Wall Charts in the Workplace. $~w'Rm@`HG3%9F1Lr1LzT[f$;6gBX4LRI@ As shown in the Rope Constructions case reported later in this article, even apparent frauds discovered by employers may go unpunished because of lack of proof that the accused was in fact the fraudster. Commissioner Maruping has conveyed his gratitude to law enforcement agencies for the latest conviction and arrests. Lost your password? 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. 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. Download the survey (PDF 3.7 MB) Start a conversation Hide Required fields are marked with an asterisk ( * ) Name * Email * Organisation * 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. %%EOF 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. We also thank the public for being vigilant about the abuse of Covid-19 TERS funds by blowing the whistle to us; said Maruping. This leaves the door open to severe consequences arising, which may be compounded by a delayed and disorganised response.. He was found guilty and he was dismissed on 10 April 2014. For millions of South Africans who depend on Sassa's social grants, the start of a new month means grant payments have begun. WhatsApp 060 011 021 1. Furthermore, the convict was declared unfit to own a firearm in terms of the firearms control Act, said Sekgotodi. Fraud is a criminal charge and has criminal elements to prove. 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. South Africa Blue Sky Publications (Pty) Ltd T/A TheSouthAfrican Number: 2005/028472/07. "The suspect allegedly received undue payments of approximately R2.1 million over a period of twelve months," she said. 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 . In the latest news in South Africa on Tuesday 2 May 2023, two more former G4S employees were arrested in the Thabo Bester case. Elevate responsibility for platform risk management Platform fraud requires executive attention and an integrated, enterprise-wide response strategy with a focus on resilience as its foundation. hXmo6+pw@.uvAD# This week Ivan Israelstam gives examples of fair discrimination. In the case of CEPPWAWU obo Limba vs Consol Glass (2009, 5 BALR 431) the employee was dismissed for fraud after he completed a form, wherein he claimed to have conducted a sample check. An employer is legally able to suspend an employee without informing them of the nature of the allegations. "The woman confirmed the tip-off she received on the impeding robbery after probing the helper's cellphone.". In times of uncertainty you need journalism you can trust. 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9. August 2023 Posted in  how much does a turkey neck weigh

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 Global Initiative Against Transnational Organised Crime counted a total of 1,971 assassination cases in South Africa between 2000 and 2021, with whistleblowers accounting for many of the targeted individuals. WATCH | Oh buoy! Vicarious liability of an employer when an employee commits an The court examined the test for reasonable person in the context of the workplace and held that the employee failed to act with the degree of care and standard expected of a person in his positio n. It assessed the evidence that was before the commissioner and held that the commissioners findings were reasonable. Are you an IEB learner looking to improve your matric results or unable to sit for the exams? Something went wrong, please try again later. For example, employers often get trapped into levelling an allegation of fraud against an employee. Then explains how one employer was able to successfully defend against an allegation of unfair discrimination, and another employer could not defend against a dismissal that was found to be an automatically unfair dismissal. Mr Ngcobo claimed overtime at an incorrect rate for a period of three months in July, November and December 2013 he had submitted claims at the rate of 1.5 per hour which was higher that his normal hour rate. 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. They also have fueled outrage over widespread graft linked to government contracts, which has plagued Africa's most developed economy for years but appears to continue unabated. What's your take on the South African nationals trapped in conflict-ridden Sudan? The Provincial Head of the Directorate For Priority Crime Investigation Mpumalanga Major General, Zodwa Mokoena applauded the Investigating and Prosecuting teams for the conviction. 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. Employees have access to highly experienced and skilled trade union officials to represent them at CCMA. 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. Something went wrong, please try again later. To date, there have been four convictions of individuals who have defrauded the UIF of Covid-19 TERS funds, and more are expected as 15 cases have been referred to the SIU for further investigation. South African CEO Ordered to Pay a Record $3.4B in CFTC Bitcoin Forex What is required to prove "fraud" in a disciplinary enquiry? He was found guilty and he was dismissed on 10 April 2014. The commissioner considered the evidence and held that the employer failed to prove that Mr Ngcobo had acted dishonestly and/or deliberately falsified his claims. 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. He has also claimed he survived an attempt on his life when his coffee was laced with cyanide. "Her passport details, banking information and daily routine, among others, were already given away," Mpumalanga Community Safety, Security and Liaison MEC Vusi Shongwe added. This week, Ivan Israelstam explains the legally distinct reasons for dismissal: for misconduct, for poor work performance, and for operational requirements. The domestic worker was arrested on Tuesday but has yet to appear in court. Nowhere does the LRA speak of the formal disciplinary enquiry that we have come to love and hate.. . Oops! The company, previously known as Bosasa and now named African Global Holdings, was one of the most prominent subjects of the Zondo Commission a judicial inquiry into government and other high-level corruption during the 2008-2019 presidency of Jacob Zuma, who is on trial on separate corruption allegations. The initial case against Mlangeni and Daguma is scheduled to be heard in the Bethlehem Regional Court on 11 September. 18. 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. Posts that attempt to bypass word filters will be deleted. This week Ivan Israelstam explains that labour law does allow an employer to dismiss an employee. Credit card fraud Giving business expense cards to employees is a great way to build trust and empower your staff with their responsibilities. We pay cash for videos. Offences and penalties. We pay cash for videos. Failure to do so properly can result in the dismissed employee being reinstated simply because the employer failed to prove the employees guilt at the CCMA or bargaining council. These are distinctly different reasons, and each has a distinctly different procedure to achieve a legally compliant dismissal. The commissioner appeared to believe that the employee had made an error by completing the form. WhatsApp 060 011 021 1. Employers cannot simply to decide to dismiss an employee on the word of an external party - without following any internal procedures. Those who have helped themselves to funds earmarked for workers during the lockdown should always remember that the law is creeping towards them and they will not have any peace. To date, there have been four convictions of individuals who have defrauded the UIF of Covid-19 TERS funds, and more are expected as 15 cases have been referred to the SIU for further investigation. At the arbitration the employer was unable to convince the commissioner that the employee had completed the form for reasons of fraud. However, it is important to note that an employee must be suspended on full pay. What are the procedures you need to follow? In 2020 the Fund embarked on the "follow the money" project was close to R 900 million was recovered. The good news is that you can apply for an IEB matric rewrite. Employers sometimes know that misconduct has definitely taken place, but the employer cant pinpoint the actual culprit/s. As such, many businesses may have put in place a number of measures to detect and prevent fraud from being committed against them by an outsider, she said. Copyright 2023 by The Associated Press. endstream endobj startxref 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 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. 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. In December 2012, Mr Ngcobo was assigned to work on a project with the Head of Basic Haematology Research Group and he was expected to work overtime. Amongst others, the MOU requires that the Covid-19 TERS monies must be paid over to the qualifying workers applied for. This helps to safeguard the integrity of the investigation, any evidence, as well as any potential witnesses, said Hinxman. Currently, disciplinary enquiries are held as extremely formal affairs, where those involved will sit down together in a tribunal manner. However, for the same misconduct, the allegation of misappropriation of funds could be used which has less of a burden of proof did the employee take the money without an authorisation? They were consequently charged with just over 80 counts of fraud, which includes theft and money laundering. Police have arrested two more suspects in the Thabo Bester prison escape case. There are always exceptions in the cases, but employers are well-advised to follow the standard methods for each circumstance. READ |Man found guilty on 280 counts of fraud after card cloning crime spree across Western Cape. Choose from our range of newsletters to get the news you want delivered straight to your inbox. LISTEN | ESKOM DIRTY DOSSIER: Andr De Ruyter, the apartheid spy and the R50m off-the-books snoop. <> They face charges of theft and fraud in the awarding of PPE contracts. The Global Initiative Against Transnational Organised Crime counted a total of 1,971 assassination cases in South Africa between 2000 and 2021, with whistleblowers accounting for many of the . Rapid response in these situations can help employers avoid the possibility of losing out on valuable information or destruction of key evidence as a result of inappropriate handling of processes or inadvertently tipping off a suspect.. 318 0 obj <>/Filter/FlateDecode/ID[<9CAA0A4E796A6F41B6B6610C6B7604F8><8C9E643D68FAF54AB172E07245A689B9>]/Index[295 41]/Info 294 0 R/Length 106/Prev 265888/Root 296 0 R/Size 336/Type/XRef/W[1 2 1]>>stream Shongwe said over the years, the police have been inundated with complaints of people who have been robbed of huge amounts of money. The project is expected to resume in April 2022 upon the appointment of audit firms and it is anticipated that additional recoveries will be made, and more arrests will take place as fraudulent claims are uncovered. 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. All rights reserved. The employer suffered a loss of R8,647.60 as a result of the employees conduct. Podcast series: click here to find them all. He may be contacted on (011) 888-7944 or 0828522973 or on e-mail address: ivan@labourlawadvice.co.za. Go to: www.labourlawadvice.co.za. However, there must be some evidence before the Special Court that he was so satisfied, otherwise there is no displacement of the immunity conferred on the taxpayer by the proviso to s 79(1) and the opening words of para. It's that time of the year, applications season. Collins Concise Dictionary defines fraud as deliberate deception, trickery or cheating intended to gain an advantage. Address: Regus Business Centre 1st Floor, Block B, North Park, Black River Park, 2 Fir Street, Observatory, Cape Town, 7925, South Africa Postal: Blue Sky Publications (Pty) Ltd T/A TheSouthAfrican, PO Box 44354, Claremont, 7735, South Africa, United Kingdom Blue Sky Publications Ltd Company Registration Number: 04683692. PRECCA also imposes a statutory reporting obligation in instances where suspicion exists . There are various types of entrepreneurs, and each type tends to make their own decisions depending on their personalities, skills, and environment. Entrepreneurs make big ideas turn into reality. He may be contacted on (011) 888-7944 or 0828522973 or on e-mail address: [emailprotected]. "The complainant reported that she got information that her 26-year-old employee has photos of her documents [ID, bank card and an actual photo] on her (the suspect) cellphone. She then transferred an amount of R1-million from the clients account into Dagumas account through various fraudulent transactions. The Unemployment Insurance Fund in South Africa ensures that workers can access short term financial relief if they require it, by asking employers to contribute towards the Fund. 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. Employers need to understand that legally, where they wish to infer that an employee committed fraud, they must at least be able to prove that the false act could not have been carried out in error. 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. 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. A former Labour Department employee was sentenced on4 November 2019 for 15 counts of fraud in Mpumalanga, dating back to 2012. <> Unforeseen circumstances that lead to a loss of income can be devastating for many people. In June 1923, the United States government charged, tried, and convicted Marcus Mosiah Garvey (1887-1940) - National Hero of Jamaica, political activist, and movement leader - of mail fraud for allegedly selling stock of his own shipping and passenger company, the Black Star Line. Please enter your email address. A new wave of fraud is targeting bank customers and the number of people falling victim . % The alleged criminal and unlawful activities involve elements that are best characterized as organized crime, de Ruyter said. This was after the couple, who are directors of Denmeng Trading, applied for Covid-19 TERS for 553 workers when they only employed 22. Employment and Labour welcomes latest conviction of a couple for - Gov Journalism strengthens democracy. 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. 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. The ombud investigated more than 2,880 banking fraud related cases last year, an increase of 7.5% from 2020. 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. Two employees who were dismissed by G4S have been arrested in connection with the Thabo Bester escape case. South Africa: Bribery & Corruption - Norton Rose Fulbright READ |Foreign nationals nabbed by Hawks and FBI for romance scam face extradition to the US. Thokozani Percy Skosana, 42, was a former employee of the . All JSE data delayed by at least 15 minutes. PDF In the Tax Court of South Africa Held at Durban He agreed to be paid at a rate of 1.0 per hour (his normal hourly rate). The man was arrested in the early hours of Wednesday by the serious corruption investigation unit and was expected to appear in the Potchefstroom Magistrates Court to face charges of fraud and money laundering. 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. At what age did you start saving for retirement. 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. LISTEN | Thinking the unthinkable: What if Siya Kolisi cant make the World Cup? "Fraud" is a criminal charge and has criminal elements to prove. Buying a home: Are deposits still needed? Hawks spokesperson Colonel Katlego Mogale said the man allegedly approached area supervisors working around North West to start recruiting "ghost employees". 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 . Another arrest in fraud case involving Standard Bank employee For more information please contact Thabang Rapuleng at [emailprotected] or Tamsanqa Mila at [emailprotected], Article published with the kind courtesy of Cliffe Dekker Hofmeyr www.cliffedekkerhofmeyr.com. Journalism strengthens democracy. A government health department employee who warned of illegal dealings worth nearly $50 million was shot 12 times in the driveway of her home. Spokesperson for the Mpumalanga Hawks, Captain Dineo Lucy Sekgotodi said: Nobody could count how many court appearances he has made over the years.. The optimisation of these skills is crucially important because: BY Ivan Israelstam, Chief Executive of Labour Law Management Consulting. Shongwe urged residents to be extremely cautious of helpers or domestic workers they employed. You will receive mail with link to set new password. %PDF-1.5 % In either instance, a capable chairperson will be able to recognise that an employer is not a legal representative and can identify the true misconduct of the employee.. The court held: '[I]n this case, the employee was charged with dishonesty. He advised communities to avoid carrying large sums of cash but to rather share the dividends by doing electronic transfers. He died in the hospital. The Court additionally ordered him to pay the spent money back to the department. 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. 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In relation to the second charge, Mr Ngcobo also explained that the claims submitted at the rate of 1.5 per hour were made in error. The slayings and other cases have anti-corruption groups urging South African authorities to provide far better protection for whistleblowers. JOHANNESBURG (Reuters) - South African retailer Steinhoff said an independent report had found it had overstated profits over several years in a $7.4 billion accounting fraud involving a small. Our offices are for administrative purposes only, no visitors will be accepted without an appointment. It remains increasingly important that businesses fight fraud and corruption by understanding when and how to process any allegations that come forward while remaining cognisant of the employee and employer rights., Read: The new Covid-19 legal case that South African workers should know about, An employee is caught committing fraud in South Africa heres what happens next, The new Covid-19 legal case that South African workers should know about, Crossover SUVs you can get in South Africa for R10,000 a month, South Africans are having to rent out parts of their homes heres why, You need to stop using your phone on the toilet, Unleash fast wifi everywhere: Upgrade your wifi experience with a mesh system, Business Talk Establish your company as a market leader, Wingu Academy and The Angela Academy join forces to provide high-tech schooling to underprivileged communities in South Africa, SARS is coming after these wealthy taxpayers, Lower stages of load shedding planned for this week heres the new schedule, Silver lining for South Africas property market, This new work trend causing headaches for businesses in South Africa, 3 ways South Africans can acquire citizenship in another country, Compelling ways to diversify and grow your retirement pot. TheSouthAfrican.com is all about South Africa and the stories that affect South Africans, wherever they are in the world. The information on this website does not constitute legal advice. 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 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. As per the case law above, the parity principle is a factor that has . 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. Ramaphosa and Mfeleng were found guilty on ten counts of money laundering and fraud, and Methi was found guilty on three counts of the latter. As the most recent example, the brazen murder of Cloete Murray and his son sends a chilling and intimidating message to anyone seeking to end impunity for corruption and crime. In this instance intention to Mr Ngcobo was charged with dishonesty and/or falsification of overtime claims. Case against SARS accomplice postponed for a further pre-trial. Thorough background checks should be made of people we hire in our houses, whether they are local or foreign nationals. Sometimes, employees may have a reasonable explanation, and in such cases, a dismissal is not the appropriate sanction. The pair, aged 32 and 57, are expected to appear in the Palm Ridge Specialised Commercial Crimes Court on Monday. Mlangeni and Daguma were arrested on 5 June this year at their respective homes when warrants for their arrest were executed. The death of Babita Deokaran, an employee of the health department in Gauteng province, already underlined the dangers for whistleblowers in South Africa. which confirms that employees committed fraud. At the CCMA, Mr Ngcobo challenged the substantive fairness of his dismissal. This must represent a turning of the tide for our country.. @b@b BDiSMW`@J& @BqH#> pZ 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). 1. 11 May 2023 (09:00 - 15:30) Interactive Online Course, 12 May 2023 (08:30 16:00) Interactive Online Course, 17 & 18 May 2023 (08:30 - 16:00) Interactive Online Course, 19 May 2023 (08:30 - 16:00) Interactive Online Course, 19 May 2023 (09:00 - 11:30) Interactive Online Presentation, 25 May 2023 (08:30 - 16:00) Interactive Online Course, 25 May 2023 (09:00- 16:00) Emperors Palace: Convention Centre, 01 June 2023 (08:30- 16:00) Emperors Palace: Convention Centre, 01 June 2023 (09:00 - 12:00) Interactive Online Course, 08 June 2023 (09:00 - 16:00) Interactive Online Course, 08 June 2023 (08:30- 16:00) Emperors Palace: Convention Centre, 09 June 2023 (09:00 - 13:00) Interactive Online Course, 14 June 2023 (09:00 - 15:30) Interactive Online Course, 22 June 2023 (08:30 - 16:00) Interactive Online Course, 22 June 2023 (09:00- 16:00) Emperors Palace: Convention Centre, 06 July 2023 (08:30 - 16:00) Interactive Online Course, The OHS Act and the Responsibilities of Management Course, Human Resources Management (HRM) Metrics and HRM Scorecards, Compensation for Occupational Injuries and Diseases Course, Health and Safety Representative and Committee Training Course, Employment Equity Committee Training (Emperors Palace), The OHS Act and the Responsibilities of Management Course (Emperors Palace), The Labour Court Review Application Process Simplified, Compensation for Occupational Injuries and Diseases Course (Emperors Palace), Mastering Human Lie Detection for a Thriving Workplace, Managing Day-to-Day Challenges in the Workplace, HIRA Hazard Identification and Risk Assessment Course, Managing Day-to-Day Challenges in the Workplace (Emperors Palace), Incident Investigation of Work-Related Injuries and Diseases Course, Mashishing Labour Centre closes due to theft of electrical connections, Displaying Compulsory Wall Charts in the Workplace. $~w'Rm@`HG3%9F1Lr1LzT[f$;6gBX4LRI@ As shown in the Rope Constructions case reported later in this article, even apparent frauds discovered by employers may go unpunished because of lack of proof that the accused was in fact the fraudster. Commissioner Maruping has conveyed his gratitude to law enforcement agencies for the latest conviction and arrests. Lost your password? 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. 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. Download the survey (PDF 3.7 MB) Start a conversation Hide Required fields are marked with an asterisk ( * ) Name * Email * Organisation * 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. %%EOF 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. We also thank the public for being vigilant about the abuse of Covid-19 TERS funds by blowing the whistle to us; said Maruping. This leaves the door open to severe consequences arising, which may be compounded by a delayed and disorganised response.. He was found guilty and he was dismissed on 10 April 2014. For millions of South Africans who depend on Sassa's social grants, the start of a new month means grant payments have begun. WhatsApp 060 011 021 1. Furthermore, the convict was declared unfit to own a firearm in terms of the firearms control Act, said Sekgotodi. Fraud is a criminal charge and has criminal elements to prove. 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. South Africa Blue Sky Publications (Pty) Ltd T/A TheSouthAfrican Number: 2005/028472/07. "The suspect allegedly received undue payments of approximately R2.1 million over a period of twelve months," she said. 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 . In the latest news in South Africa on Tuesday 2 May 2023, two more former G4S employees were arrested in the Thabo Bester case. Elevate responsibility for platform risk management Platform fraud requires executive attention and an integrated, enterprise-wide response strategy with a focus on resilience as its foundation. hXmo6+pw@.uvAD# This week Ivan Israelstam gives examples of fair discrimination. In the case of CEPPWAWU obo Limba vs Consol Glass (2009, 5 BALR 431) the employee was dismissed for fraud after he completed a form, wherein he claimed to have conducted a sample check. An employer is legally able to suspend an employee without informing them of the nature of the allegations. "The woman confirmed the tip-off she received on the impeding robbery after probing the helper's cellphone.". In times of uncertainty you need journalism you can trust.

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employee frauds cases south africa