Justice department secures preservation order to freeze stolen millions, suspends officials

The Department of Justice and Correctional Services has obtained a preservation order to freeze millions of rand stolen from its Guardian’s Fund.

The Citizen reported this week about four staffers who were implicated in the R17 million fraud that took place in April.

The department said the officials, based in Pietermaritzburg, KwaZulu-Natal, have been suspended.

“The preliminary investigation found that the Guardian’s Fund System was breached internally by certain officials working at the fund.

“These officials have since been placed on precautionary suspension pending the finalisation of the investigations.

“The department has obtained a preservation order for some of the stolen funds, and thanks to the hard work of law enforcement, progress is being made on all possible leads,” the department said in a statement on Friday.

ALSO READ: Four staffers in hot water over stolen millions at justice department

Staffers in the Pietermaritzburg office are on a go-slow in response to the theft accusations.

Police, Hawks and FIC investigating

The officials were implicated during an internal investigation launched after the fraud was discovered.

Payments to beneficiaries were subsequently stopped.

Meanwhile, the criminal investigation is being conducted by the police, Hawks, the Financial Intelligence Center (FIC) and the Asset Forfeiture Unit (AFU), said the department.

“These agencies have shared with the department that their efforts are yielding positive outcomes.

“The department has also explored alternative ways to protect the payment system. As a result, the department began making beneficiary payments last week in the Pretoria, Bloemfontein, Kimberley and Cape Town offices of master.”

The Pietermaritzburg and Makhanda branches are expected to resume payments soon.

The Guardian’s Fund administers monies for beneficiaries who cannot manage their finances such as minors, unborn heirs, and missing or absent persons.

The money in the fund is invested in the Public Investment Corporation (PIC) and audited annually.

A list of unclaimed funds and beneficiaries’ names is published in the Government Gazette every year in September.

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