PRASA dismisses employee following fraud investigation
State-owned passenger rail company the Passenger Rail Agency of South Africa (PRASA) has dismissed an employee for the alleged theft of R34.5-million.
PRASA detected irregular payments during routine financial review processes, which was escalated to senior leadership. PRASA's Internal Audit department and an existing supplier conducted a forensic investigation, which revealed three fraudulent transactions allegedly executed by a PRASA employee totalling nearly R9.55-million.
On being interrogated by the investigators, the employee is said to have admitted to committing the fraud and subsequently returned the stolen funds.
Following this initial discovery, PRASA immediately suspended the employee and reported the matter to the South African Police Service.
The company continued its internal investigation and unearthed additional fraudulent transactions allegedly by the same individual amounting to nearly R24.98-million. Upon interrogation, the employee is said to have also confessed to these additional unauthorised transactions.
As an outcome of the process, the employee was dismissed, and a criminal case of fraud is pending.
The investigation helped pinpoint internal control deficiencies that enabled the fraud. PRASA has introduced enhanced measures to bolster internal controls and prevent future fraud, it notes.
"PRASA's management remains committed to upholding integrity, transparency and accountability. Going forward, the organisation will remain vigilant against potential financial irregularities," the company says.
Comments
Research Reports
Projects
Latest News
Showroom
BOVA cemented their reputation in Africa by delivering high quality engineering through their range of safety footwear. 21 years after producing...
VISIT SHOWROOM
Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
