By Johnathan Paoli
Postbank is at the centre of a multi-million rand fraud scandal, with a sophisticated criminal syndicate involving internal employees and external suppliers siphoning over R92 million from the state-owned institution.
Parliament’s economic development and trade committee has condemned the failure to detect the fraud, voicing serious concerns over the institution’s internal controls, oversight and accountability.
Acting committee chair Bones Modise said this week that the revelation added to the growing disillusionment with state employees who were exploiting vulnerabilities and undermining public confidence in government institutions.
“It is unfortunate that Postbank’s system was exposed to outside criminality by employees who work for state entities. The people that one least expects to undo the good work of the government become the same persons who frustrate that good work,” he said.
The scandal surfaced following an extensive forensic investigation conducted by the auditing firm KPMG.
Postbank CEO Ntomoxolo Mbengashe said
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