Postbank made significant progress in preventing fraud, NCOP hears

CAPE TOWN - The Postbank says it made significant progress in preventing fraud after almost R90 million in fraudulent transactions were identified.

The Postbank on Wednesday briefed the National Council of Province (NCOP)'s select committee on economic development and trade on the KPMG forensic report on the fraud that took place at the Postbank.

The Postbank also told Parliament that some of those implicated had been fired and charged criminally.

The select committee on Wednesday received a briefing by the Postbank on the forensic report on the millions in fraudulent transactions.

Besides the cash theft, the forensic report also looked into contract management and ghost employees.

Postbank CEO Nikki Mbengashe explained the modus operandi and how the post office was also involved. 

"So, they worked with people inside the SA Post Office branches to either reissue or clone cards or reset pins for the existing beneficiaries."

But Mbengashe made it clear that beneficiaries were not the ones defrauded.

"I think, again, there was confusion that did they steal beneficiaries' money. No, they did not steal beneficiaries money. I think that's important. They stole the bank's money."

Deputy Minister Mondli Gungubele told the committee that new authenticated bank cards were now being used to prevent any fraudulent transactions.