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. A government health department employee who warned of illegal dealings worth nearly $50 million was shot 12 times in the driveway of her home. To prove fraud, the employer must be able to prove misrepresentation, unlawfulness, actual or potential prejudice and intention. You can cancel anytime and if you cancel within 14 days you won't be billed. 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. Shongwe said over the years, the police have been inundated with complaints of people who have been robbed of huge amounts of money. % On review, the Labour Court upheld the decision of the commissioner. The Directorate for Priority Crime Investigation (Hawks) pursued the case after it was reported. UIF opens fraud case against NPO | SAnews Sometimes, employees may have a reasonable explanation, and in such cases, a dismissal is not the appropriate sanction. On review to the Labour Court The Court finding that the CCMA - misconstrued the nature of the enquiry it was enjoined to undertake. What is required to prove "fraud" in a disciplinary enquiry? 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. During 2012, now seven years ago, he fraudulently started a company named Simajale Transport and General Dealer. Copyright Blue Sky Publications Ltd. All Rights Reserved. But in his State of the Nation Address this year, President Cyril Ramaphosa acknowledged shortcomings and the need to strengthen the witness protection unit. 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. 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 . This illustrates the urgent need for employers to make improvements to their evidence preparation skills and labour law expertise. Employers cannot simply to decide to dismiss an employee on the word of an external party - without following any internal procedures. 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. Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24. His son, Thomas Murray, who worked with his father, was declared dead at the scene. This means that those frauds, for which employees have been caught are likely to be only the tip of the iceberg. In this instance intention to Consequently, the statements from the people who were falsely registered to receive UIF benefits were obtained and Skosana was arrested. However, it is most unclear how an employee could logically complete an entire check confirmation form by mistake. However, joint efforts by the UIFs investigators, law enforcement agencies at the Fusion Centre such as the HAWKS, National Prosecuting Authority (NPA), and the Financial Intelligence Centre (FIC) led to the couples successful arrest and conviction. Spokesperson for the Mpumalanga Hawks, Captain Dineo Lucy Sekgotodi said: Nobody could count how many court appearances he has made over the years.. How To Apply To Rewrite IEB Matric Papers, Beware Of Retrenchments For Poor Performance, How To Check The Status Of Your NSFAS Application, Here's The Sassa Grant Payment Schedule For 2023/2024, 2024 Applications Are Now Open At These Universities, April Sassa Grant Payments Continue Today, often have easier access to bigger amounts of money, can cause great damage to customer relations, can be in a better position to cover up irregularities. PwC's Global Economic Crime and Fraud Survey 2022 A former Labour Department employee was convicted and sentenced on Monday 4 November at the Witbank Regional Court for 15 counts of fraud. 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. The annual International Fraud Awareness Week last November highlighted an increasing problem that organisations around the world are . The employers strategy for combating employee fraud needs to be based on two broad approaches, namely, prevention and reaction. Case against SARS accomplice postponed for a further pre-trial. committing fraud and concluding that his dismissal was substantively fair. After killings, calls to protect S. Africa's whistleblowers The Hawks have arrested two people in connection with R14m PPE tender fraud at the National Health Laboratory Services (NHLS). PDF In the Labour Appeal Court of South Africa, Johannesburg South Africa Blue Sky Publications (Pty) Ltd T/A TheSouthAfrican Number: 2005/028472/07. In times of uncertainty you need journalism you can trust. The Labour Appeal Court held that the main issue to be determined was whether the employee acted intentionally or negligently. Rc$3@[8#F\XhA|#Cc!m]^V1.8>JVl>q, No matter the size of a business, fraud can have a significant impact on its reputation, operations and revenue, says Lucinda Hinxman, lead consultant of Employment & Labour at law firm CMS South Africa. 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. TheSouthAfrican.com is all about South Africa and the stories that affect South Africans, wherever they are in the world. Oops! READ |Foreign nationals nabbed by Hawks and FBI for romance scam face extradition to the US. We pay cash for videos. Credit card fraud Giving business expense cards to employees is a great way to build trust and empower your staff with their responsibilities. a) thereof. "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. Financial Crime in South Africa: Overview | Practical Law "The suspect allegedly received undue payments of approximately R2.1 million over a period of twelve months," she said. On appeal, the employer argued that the employee was guilty of dishonesty and not negligence because during the arbitration proceedings, the employer had shown that the employee had deliberately submitted false claims. Copyright Blue Sky Publications Ltd. All Rights Reserved. It is possible that, after completing a sample check, the employee could make some errors while completing the check confirmation form. On review the Labour Court (LC) dismissed the employer's application to set aside the award. Another arrest in fraud case involving Standard Bank employee 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. Entrepreneurs make big ideas turn into reality. 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 LABOUR COURT OF SOUTH AFRICA, JOHANNESBURG. endobj Using comment sections to post about or comment on closed threads will result in that section being closed to further posts. Feature: Internal fraud - Who commits it and why? - Accountancy SA PRECCA also imposes a statutory reporting obligation in instances where suspicion exists . What's your take on the South African nationals trapped in conflict-ridden Sudan? All rights reserved. This leaves the door open to severe consequences arising, which may be compounded by a delayed and disorganised response.. At what age did you start saving for retirement. Williams testified before the Zondo Commission implicating about 39 parties in corrupt activities at the countrys tax authority, the South African Revenue Service. This week, Ivan Israelstam explains the legally distinct reasons for dismissal: for misconduct, for poor work performance, and for operational requirements. This case concerns the nature and extent of the obligation that rests on an applicant for employment to disclose the circumstances surrounding a . An employer is legally able to suspend an employee without informing them of the nature of the allegations. PDF In the Tax Court of South Africa Held at Durban 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. Crime counted a total of 1,971 assassination cases in South Africa between 2000 and 2021, with whistleblowers accounting for many . It provides cover to workers injured and/or who contract diseases at work. He may be contacted on (011) 888-7944 or 0828522973 or on e-mail address: ivan@labourlawadvice.co.za. This week Ivan Israelstam answers the question: what is workplace fraud? '|+ldZ*?}vOIZ8R*ti )zqnW!+a)rH,7`p7lP&s`.IQyT0[Oh[Ww4[:[/Rz~ LJtA &HOH=~U0VM> [~>H) aoVUUI3U?>|UEcUmDV. No one has been arrested in the killings, which police said had the hallmarks of a professional hit. They were consequently charged with just over 80 counts of fraud, which includes theft and money laundering. Never miss a story. 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. Deokarans killing spurred another corruption whistleblower, Athol Williams, to leave the country, he said. South Africa's Department of Justice did not respond to messages seeking comment on Williams' experience and the general policy on protection for whistleblowers. 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. Unforeseen circumstances that lead to a loss of income can be devastating for many people. A former Labour Department employee was sentenced on4 November 2019 for 15 counts of fraud in Mpumalanga, dating back to 2012. Our offices are for administrative purposes only, no visitors will be accepted without an appointment. Intention is everything: The role of intent in employee discipline for Andre de Ruyter has spoken of corruption linked to the government and others at the utility and said Wednesday that unnamed sources who provided him with information feared for their lives. Employers sometimes know that misconduct has definitely taken place, but the employer cant pinpoint the actual culprit/s. WATCH | Oh buoy! 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.