Clerk guilty of nearly R1 million worth of payroll fraud

Photo for illustration. (Archive photo: Maroela Media)

A clerk who handled payroll at a company on Augrabies in the Northern Cape was found guilty on 242 charges of fraud amounting to R896 506, 95 as well as 242 charges of money laundering.

Elizabeth Christina Smith was found guilty in the Commercial Crime Court and sentenced to six years’ direct imprisonment for fraud and four years for money laundering. Her sentences are to be served concurrently.

Mojalefa Senokoatsane, spokesperson for the National Prosecuting Authority (NPA) in the Northern Cape, says Smith manipulated the company’s salary system between February 2017 and July 2021 by reactivating seasonal workers as re-employed workers. She processed salary payments in their names, but transferred the money to her own bank account and that of her children.

Smith worked for an international company.

The company discovered the irregularities and the case even attracted international attention due to the company’s operations across multiple jurisdictions.

During sentencing, adv. Wilhelmus Els, public prosecutor, argued that Smith held a position of trust in the company and abused that trust for personal enrichment over a long period of time.

Senokoatsane says the state has argued that such breaches undermine corporate governance and employer confidence and negatively impact the wider economy.

“The NPA reiterates its commitment to the prosecution of complex commercial crimes and to ensuring that those who abuse positions of trust for personal gain are held accountable.”