JOHANNESBURG – The Passenger Rail Agency of South Africa (PRASA) has dismissed an employee involved in fraudulent activities totaling more than R24 million, reinforcing its stance against fraud within the agency.
According to South African Government News Agency, irregular financial transactions were initially detected during routine financial reviews. This discovery led to a more in-depth investigation by PRASA’s Internal Audit department, which involved an independent supplier conducting a forensic investigation.
The investigation identified three fraudulent transactions executed by a PRASA employee, amounting to R9,547,000. Upon interrogation, the employee admitted to the fraud and returned the stolen funds. Following this admission, PRASA suspended the employee and reported the incident to the South African Police Services (SAPS).
Further investigations uncovered additional fraudulent transactions by the same individual, totaling R24,976,747.30. The employee also confessed to these unauthorized transactions upon interrogation.
As a result of these findings, the employee was dismissed, and a fraud case is currently pending against them. The investigation also highlighted deficiencies in PRASA’s internal controls that had allowed the fraud to occur. In response, PRASA has implemented enhanced measures to strengthen these controls and prevent future fraudulent activities.
PRASA’s management has reaffirmed its commitment to maintaining integrity, transparency, and accountability in its operations. The agency has pledged to remain vigilant against potential financial irregularities to ensure the protection of its resources and reputation.