The R800 000 fraudulently transferred to a company of attorneys has been returned to the City of Joburg’s coffers, mayor Herman Mashaba said on Monday.
Last week, the mayor revealed that two employees who worked for the City’s group finance department had been suspended after reports of the fraud emerged.
Mashaba said that the two were part of a syndicate of internal and external individuals, who swindled money from a customer’s account to an attorney’s trust account, before requesting the payment thereof.
The mayor confirmed that that the company that had received the fraudulent transfers made by the employees have returned the money back the City.
“This is not just a victory for the City, but a victory for our residents and the rule of law.”
“This strengthens my belief in the value of ensuring that the Group Forensic and Investigation Services (GFIS) Department be further capacitated to address the over 2500 cases before it. Added to this, I believe that GFIS should be further capacitated with its own Asset Forfeiture Unit (AFU) which will be responsible for recovering money and assets stolen from the City.”
Mashaba further said: “The AFU will ensure that funds are recouped to ensure that service delivery continues unhindered, especially services to the poorest and most vulnerable of our residents”.
He confirmed that charges had been laid against the two, adding that the city was also going after “the external individuals that were part of the syndicate to swindle money from the city” to ensure that they face the full might of the law.
“It is disappointing to learn that there are officials who are still involved in and engaged in corrupt activities. This is despite the fact that we continuously educate employees about fraud and corruption, and despite the fact that we have made it clear that corruption will not be tolerated in the City of Johannesburg.”
“There will be zero tolerance for corruption and we will continue to vigorously pursue every allegation of corruption in collaboration with institutions such as the Hawks and other organisations within the criminal justice system,” he said.