KPMG says its approved bursars were not affected in R16m fraud case

KPMG South Africa says it dismissed Fidelis Moema on November 11 2022 after a stringent disciplinary process related to noncompliance with the firm’s policies. 

Moema, 32 was on Tuesday arrested for theft, fraud and money laundering after he allegedly diverted more than R16m in bursary funds to his own bank account between 2021 and 2022. 

KPMG said on Friday it was only after his dismissal that the firm identified potential fraud committed by Moema and immediately initiated an internal forensic investigation.

“This investigation uncovered fraudulent behaviour related to bursary funds and as a result we reported the matter to the relevant law enforcement authorities in February 2023. We continue to work closely with the authorities to bring this matter to a close,” KPMG said. 

It said the forensic investigation identified alleged collusion by Moema with external parties but did not identify others within KPMG involved in the scheme. 

Moema handed himself over to the Hawks’ serious commercial crimes investigation team in Johannesburg on Tuesday. He appeared in the Johannesburg specialised commercial crimes court the same day and the case was postponed until next Tuesday for a bail application.

“With regards to the bursaries, all monies misappropriated was through an elaborate scheme of fictitious accounts, over-riding of internal controls and deliberate collusion with external parties,” KPMG said. 

KPMG’s approved bursars had not been affected, the firm had honoured all its commitments and the bursary programme would continue to support students in enhancing the profession. It said the most disappointing aspect of the theft was the lost opportunity to assist additional students. 

“As a business that is committed to ensuring ethical business practice and holding people accountable for their actions, we will continue to work with the law enforcement authorities to ensure the perpetrator is brought to book and held accountable for his actions.” 

Hawks spokesperson W/O Thatohatsi Mavimbela said more suspects were expected to be arrested.

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