The National Prosecuting Authority (NPA) and Gqeberha Specialised Commercial Crimes Court have sentenced former credit validation consultant Mzwakhe Khumalo (33) to 15 years for fraud during his work at FNB.
On a statement issued out by NPA, the accused received a penalty of 15 years in dark cells, six years on accounts of money laundering and one year for violating the Electronic Communications and Transactions Act (ECTA), all to run concurrently. Khumalo had been in a group of an urbane syndicate which has defrauded FNB and one German national and the bank’s client, Hans-Christian Bremm above R6.4 million from November 2017 – February 2018 of which just over R6m has been recovered. It was discovered that Khumalo had been working with co-conspirator, Lwando Dingiswayo (33) who had a separate trial and was also the bank’s employee. These two used their posts to attain unauthorized access to Bremm’s two accounts on separate occasions, which had Sabine Katrine Raab, another German national staying in the country, full signatory authority on both accounts.
The authorities confirmed that on the 8th and 20th of December 2017, then the 6th of February 2018, the co-suspected gained entry into Bremm’s accounts with no official business authorisation nor that of the client. In 2017, Dingiswayo then altered the contract details on the victim’s profile which included his contact details which gained him unlimited access to the account. Again in 2018, the syndicate together with a John Anthony Mackay and another impersonating Bremm successfully replaced Raab’s signatory authority with Mackay’s using bogus passports. In February 2018, the organized crime scheme attempted a R4.5m transfer from Bremm’s seven-day investment account to the cheque account, they then tried to withdraw R500 000 at FNB Eloff street branch in JHB, a coup that ran dry as the teller grew suspicious.
The syndicate then transferred the remaining R1.6m to a standard bank account under the syndicate’s control. On 13 February 2018, these transferred amounts R400 000 had already been withdrawn from the account before a hold was placed on the remaining funds. Khumalo denied his involvement in fraud and money laundering but admitted to violating ECTA which had state advocate Ahmed Rafick shaken in his boots.
“The court agreed that Khumalo’s actions showed a clear disregard for the law and highlighted the need for consequences,” said Rafick.
Khumalo’s application to leave for appeal by his defence was successfully opposed by the NPA, leaving standing the initial outcome of the court proceedings. Eastern Cape director of public prosecutions, Barry Madolo welcomed the decision of the court and applauded the investigating team with the prosecutor for keeping justice alive.
“NPA has devotion in financial crime’s combat and economy protection, this case reflects our intent to bring to book those who undermine the law, and they will all be made to face its powers,” added Madolo.
