Embattled rail utility Prasa is investigating two suspicious payments totalling R30m that were diverted to fraudulent accounts and says it has already recovered R19m of the missing funds.
The Sunday Times learnt of the suspicious payments, made in October last year, from internal documents that show the two R15m payments — one an eThekwini municipality rates bill and the other a payment to a company that refurbishes Prasa's dilapidated coaches — were diverted to different accounts in Prasa’s SAP payment system.
Prasa this week confirmed a forensic investigation into the payments.
In the case of the payment that was meant to go to eThekwini, the Sunday Times has established that within days of receiving the loot, a flurry of cash withdrawals and electronic funds transfers were made from the account which was held in the name of a Jimmy Chauke from Mamelodi.
On October 14, a R15m payment for rail company CTE Investments was diverted into the account of a company called Simnhla Trading and Projects, the listed owner of which is a Simon Nhlapo in Atteridgeville, Pretoria.
An affidavit deposed to by Prasa financial manager Moyahabo Lehora says the agency became aware of the fraud only after CTE’s Vishal Basant informed it three days later that they had not received the money. CTE had requested payment for work it did for Prasa the previous month.
“We received a remittance on Friday for R15m, however we have not received these funds as yet,” said Basant in an email alerting Prasa to the fraud. This kicked off a frantic search at Prasa’s head office in Wolmarans Street, Braamfontein, to track down the missing millions after it was discovered that the account used did not belong to CTE.
In an affidavit to Hillbrow police investigating the case, Lehora says: “This is when it was suspected that there was possible foul play or fraud ... as the accounts are different. I did not know when payment was made that the bank account had changed to a fraudulent bank account.”
By the time Prasa managed to get the bank to freeze the fraudulent account in November, R4m had been withdrawn.
I picked up that the bank account details differed from those on the SAP [records] ... I further noticed that other payments which went through were correct. This is when it was suspected that there was possible foul play
— Prasa’s assistant manager for cash and bank, Tshepo Songo
Numerous attempts to get hold of Nhlapo were unsuccessful.
Two days after that fraudulent payment, another R15m meant for eThekwini municipality was deposited into another fraudulent account. This one belonged to a company called Jeislo Factory Holdings, registered to Chauke and four other directors.
Prasa managed to recover only R7m in the fraudulent account in January.
A police statement made by Prasa’s assistant manager for cash and bank, Tshepo Songo, says they became aware of the fraud on November 11 when eThekwini municipality requested proof of payment because it hadn’t received the money, which it had been expecting since October 17.
“I picked up that the bank account details differed from those on the SAP [records] ... I further noticed that other payments which went through were correct. This is when it was suspected that there was possible foul play,” said Songo.
Songo said in the statement that Prasa’s finance department could not make changes to the payment system. Only officials in the corporate supply chain management department could change “master data” such as bank accounts.
The police investigation is ongoing and detectives have requested further information from Prasa. The police’s commercial crimes unit wants to establish from Prasa’s IT department how its SAP computer system works and the identities of those who logged on to the remote desktop on the days the transfers were made.
According to Prasa, neither company that received the diverted money is doing business with the entity.
Prasa did not comment further.
“The matter is subject to a forensic investigation. Prasa has managed to recover R19.6m thus far,” said a spokesperson.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.