Audit firm KPMG says despite losing over R16 million meant for students to a former employee, approved bursars have not been impacted and they have honoured all commitments.
This comes after the Directorate for Priority Crime Investigation, also known as Hawks, arrested a 32-year-old Fidelis Moema on charges of theft, fraud, and money laundering of R16.5 million which was meant for bursary recipients.
The accused was arrested on Tuesday after he handed himself over to Hawks’ Serious Commercial Crimes Investigation team in Johannesburg.
The firm said Moema was fired in November 2022 after an internal disciplinary process. In February 2023, the firm approached the Hawks to open a criminal complaint.
It is alleged that Moema, who held a position of bursary specialist, diverted millions intended to sponsor the education of deserving students, to companies associated with his friends.
The funds were then allegedly channelled back to Moema.
In a statement released on Friday, the firm said it dismissed Moema after a stringent disciplinary process related to non-compliance with firm policies.
“Subsequent to his dismissal, KPMG identified potential fraud committed by Mr Moema and immediately initiated an internal forensic investigation. This investigation uncovered fraudulent behaviour related to bursary funds and as a result, we reported the matter to the relevant law enforcement authorities in February 2023,” the firm said.
During the investigation, KPMG said that it identified that Moema was allegedly colluding with external parties and no other parties within the firm were identified.
“While KPMG had internal controls in place to mitigate such issues, the forensic investigation performed identified improvements and additional measures of control have been implemented since discovery of this issue.”
Regarding approved bursaries, KPMG said they were not impacted and they have honoured all their commitments.
“The bursary programme will continue to support students in enhancing the profession. The most disappointing aspect of this situation is the lost opportunity to assist additional students.”
Meanwhile, KPMG CEO Ignatius Sehoole, added that the company takes a zero-tolerance approach to unethical behaviour.
“Any person found to be involved in it will be dealt with. I remain firm in this endeavour and as a firm we continue to drive an agenda underpinned by ethics and accountability,” said Sehoole.
Moema made his first court appearance at the Palm Ridge Commercial Crime Court on Tuesday.
The case has been postponed to April 9 for formal bail application.
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