E4.4 MILLION FRAUD: ACCOUNTANT EMPLOYEE ON THE RUN

MBABANE – An accountant is on the run after allegedly defrauding his employer of E4.4 million. The suspect was recruited as an accountant at one of the major players in the fast-moving consumer goods (FMCG) sales and distribution industry in the country. According to sources, the employee devised a strategy to embezzle funds from his employer by visiting a large supermarket in Mankayane and informing them that they were entitled to a 5 per cent discount if they paid his employer in cash weekly.It has been gathered that the supermarket had an account with the FMCG distributor valued at E100 000, with the same amount allocated as a credit limit.

Transactions

Sources claim that this business, located in Mankayane, in the Manzini Region, had 98 invoices with the FMCG distributor, which totalled E4 416 923.62. The business initially started its transactions with a balance of E28 579.85, which accumulated to the aforementioned amount on December 30, 2024. According to insiders, the employee collected weekly amounts varying between E2 700 to E172 000 based on the volume of orders placed that specific week. The directors of the supermarket reportedly paid the employee these varying sums, deducting the 5 per cent discount meant to motivate this arrangement. As discrepancies in the supermarket’s account came to light, it became evident that no deposits were made into the FMCG supplier’s account. Additionally, it was alleged that some discrepancies arose when the accounting system of the FMCG company was altered, impacting payments from several chain stores.

Irregularities

Sources indicated that when the employee was questioned about these irregularities, he left the company and has not returned. After noting that the supermarket had an outstanding balance of E4.4 million, the directors received a notice to settle their overdue account. This notice was sent by the finance general manager and informed the supermarket’s directors based in Mankayane that legal action would be taken if the matter was not resolved by January 7, 2025. Following this communication, the supermarket’s directors reportedly reported the issue to the Fraud Department at the Manzini Regional Headquarters. It was alleged that one director mentioned opting to pay cash as it would enhance profit margins by adding the 5 per cent discount to his mark-up.

Confirmed

Deputy Police Information and Communications Officer Assistant Superintendent Nosipho Mnguni confirmed that police officers are investigating the matter. Mnguni said: “There are no further details that we can share at this time; however, I can confirm that the matter is being investigated.” It should be noted that this is not the first instance wherein an employee has disappeared with millions of their employer’s money. In 2018, this publication reported that police were on a manhunt for a First National Bank (FNB) employee alleged to have stolen approximately E3 million from the bank in one day. The employee, based at the Matsapha branch of the bank, was said to have transferred the stolen funds into three different accounts, two local and one in South Africa.

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