Industrial Development Corporation (IDC) employees to face charges for theft and fraud

The Industrial Development Corporation (IDC) has laid criminal charges against eight employees for corruption, theft and fraud, but the cost to the development financier has not been disclosed.
"Since 2009, 21 … employees were involved either in corruption, theft or fraud," said IDC spokesman Mandla Mpangase.


"The IDC has laid criminal charges against employees who were found guilty [internally] of either of the offences," he said.
Twelve employees were dismissed, four faced disciplinary action and the remaining five were found not guilty.

The charges flowed from 126 investigations conducted by the IDC’s in-house forensic audit team, according to a response recently to parliamentary questions from the DA’s James Vos by Economic Development Minister Ebrahim Patel, who oversees the IDC.
The investigations date back to 2009 and examined claims of financial dishonesty.

 

"In terms of the IDC’s governance processes, cases are opened with the South African Police Service [SAPS] after being presented to the IDC’s executive and board audit committees for noting," said Mpangase.

"Some [cases] ... are still on-going, involving both SAPS and National Prosecuting Authority."
In its latest published report, the IDC flagged a "fraudulent scheme" wherein employees submitted false claims against its housing and computer loan schemes; and solar heating and subsidy schemes.

It held disciplinary hearings, firing or issuing written warnings to those found guilty of misconduct. Staff who survived the chop were ineligible for the IDC’s yearly salary review and incentive scheme.
Its internal audit unit, which includes its forensic auditors, looked into 83 cases, although the financier did not elaborate what these were.

by Moyagabo Maake/BDlive