Hawks asked to investigate R89.5 million Postbank fraud report

A forensic report revealing staggering levels of fraud at Postbank has been referred to the Hawks.

The Minister of Communications and Digital Technologies Solly Malatsi was presented with the report during a portfolio committee meeting earlier this week.

The report details governance and financial breaches at the state-owned entity (SOE) worth roughly R90 million.

Alleged theft and fraud at Postbank

The Auditor General of South Africa’s report of the 2021/22 financial year first uncovered possible fraudulent activities at Postbank.

ALSO READ: Postbank board resigns over ‘hostile and oppressive’ Gungubele

Auditing firm KPMG was then tasked with investigating the AG’s findings, with Malatsi referring the report to the Directorate of Priority Crime Investigation.

“The KPMG report on Postbank reveals frightening fraud. We will use the full might of the law to fight anyone who dares rob citizens,” the minister stated.

“I expect decisive action to ensure that public entities are run ethically and with integrity for the benefit of our citizens, and not criminals,” he added.

Postbank offers a host of banking services to the public and is also a primary distributor of Sassa grants.  

Malatsi has also instructed the SOE’s board to implement recommendations detailed in the forensic report.

Post office facing liquidation

In the same portfolio committee meeting it was revealed that the South African Post Office (Sapo) is facing a liquidity crisis.

ALSO READ: ‘Day Zero’: SA Post Office warns of liquidation and job losses

The SOE could run out of funds as early as next month and Malatsi’s Democratic Alliance (DA) colleagues called on him to seek the help of the private sector.

DA spokesperson for the communications and digital technologies portfolio suggested initiating “discussions with potential private sector partners to explore opportunities for collaboration, investment, and management” of the Sapo.

The national postal service has received almost R30 billion in bailouts since 2014, including a R2.4 billion assurance that placed the entity under business rescue last year.