Communications minister Solly Malatsi has described acts of stealing money from vulnerable social grant beneficiaries as repugnant, referring the matter to law enforcement authorities.
This follows a forensic report, steered by KPMG, which uncovered fraudulent transactions at Postbank that resulted in financial losses of R89.5 million, during 2021-2022.
Acting in its capacity as shareholder representative, the communications department directed Postbank to institute a forensic investigation on governance and financial breaches, following anonymous correspondence containing damning allegations against the bank.
This week, Postbank officials, led by deputy minister Mondli Gungubele, presented the findings of the report to Parliament’s Portfolio Committee on Communications and Digital Technologies.
As a result, Malatsi has referred the forensic report to the Directorate of Priority Crime Investigation, commonly known as the Hawks, in a bid to ensure those responsible for the crimes are brought to book.
According to the ministry, the financial losses are said to be due to theft and fraudulent activities at Postbank, with an investigation ongoing to identify the perpetrators.
The ministry has also instructed Postbank’s board to ensure the recommendations contained in the KPMG report are implemented.
Malatsi points out the KPMG report reveals frightening fraud at Postbank. “What makes this cash theft even more repugnant is that some of this money was stolen from vulnerable social grant beneficiaries and ordinary South Africans who were saving for a better future.
“We will use the full might of the law to fight anyone who dares rob citizens. I expect decisive action to ensure public entities are run ethically and with integrity, for the benefit of our citizens, and not criminals.”
During the presentation to the Parliamentary committee, the members welcomed the investigation into the theft of funds and contract mismanagement.
Committee chairperson Khusela Sangoni-Diko added the committee will follow up on the matter until the perpetrators are identified and punished.
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