Vodacom fires 631 workers over fraud
Corporate security divisions investigate more than 8,000 cases of alleged fraud or irregularities
Vodacom dismissed 631 workers and contractors for fraud in the year to end-March after the mobile communications group investigated more than 8,000 cases.
“From April 1 2023 to March 31 2024 the group’s corporate security divisions investigated over 8,652 cases of alleged fraud or irregularities, of which 6,872 related to external cases and 1,780 to internal cases.
The end result ensured the arrest of 15 suspects and the dismissal of 631 staff/contractors,” the group said in its annual report issued on Friday.
“These cases were reported and identified through various channels, including direct reports received from customers, service providers, online reports, referrals from business, the fraud management system and external whistle-blowing.”
The group said that to promote ethical conduct throughout the group it had a formal ethics management programme in place since 2006. All full-time employees were required to complete mandatory training.
“Contractors as well as strategic and business partners complete separate training relevant to their role and position. The principles also guide the sourcing of suppliers, contractors, and strategic and business partners who are expected to integrate the standards into their businesses.”
The group, worth about R195bn on the JSE, said its antibribery and anticorruption programme required all employees, suppliers, contractors, and strategic and business partners to abide by anticorruption laws in conducting business on behalf of Vodacom.
Violations of the code of conduct were reported and identified through whistle-blowing hotline Speak Up, the Ethics Advice line and other channels.
Corporate SA has had to clamp down increasingly on employees engaged in corrupt acts.
Professional services firm KPMG was recently swindled out of R16m, allegedly by its erstwhile bursary specialist, Fidelis Moema, who is facing charges. It is alleged that in 2021 and 2022 Moema diverted money meant to pay for student fees to himself and his accomplices.
A former Absa employee was arrested two years ago for allegedly defrauding the bank of R103m. The employee allegedly transferred the money into six bank accounts from September to December 2021.
Business Day reported a year ago that Gonaseelan Govender, a former senior manager in the finance department at Tiger Brands, orchestrated a multiyear fraud. The scheme saw a company that owned only two vehicles — a pickup truck and a sedan — swindle the group out of R120m over six years without providing the logistics services it purported to be supplying because no such contract between it and the food producer existed.
In April, Nedbank said that it had been a victim of internal fraud in 2023. While no client funds were taken, the cost to Nedbank, net of insurance recoveries, amounted to R50m.