Public Works Dept appoints independent service provider to investigate breach in payment system
The Hawks and the State Security Agency are also involved in probing at least three hacks of its Sage software this year alone - the last one as recent as last month.
Photo: Pexels/Sora Shimazaki (cropped)
CAPE TOWN - The Department of Public Works says it's appointed an independent service provider to investigate breaches to its payment system that has caused an estimated R55 million in losses since the start of the year.
The Hawks and the State Security Agency are also involved in probing at least three hacks of its Sage software this year alone - the last one as recent as last month.
On Friday, parliament’s Public Works and Infrastructure Committee heard the investigation has uncovered leads pointing to officials from within the department who may have been party to the fraudulent transactions.
Last week, parliament’s portfolio committee said it was incredulous that the department continued to use the Sage software system that’s costing it millions in fraudulent activity.
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The department said it was working with authorities to identify those who may have collaborated with external parties to defraud the department.
Deputy Director General Lwazi Mahlangu said as part of an internal investigation, 39 laptops of IT and finance officials have been seized.
"We then processed them, to look at the activities that happened in those laptops and we are finding some telling information in that," said Mahlangu.
Mahlangu said three of the four people initially suspended have since returned to work but officials are still under suspicion.
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"Three people have been issued with representation letters, where they have to respond and then further action will be taken with regard to the sage matter," said Mahlangu.
Mahlangu said two criminal cases have also been opened.
Police have already identified several bank accounts into which the unauthorized payments have been made.
Mahlangu added efforts are underway by the national prosecuting authority to freeze the identified accounts to recover the stolen funds.