What duties do employers have when recovering funds misappropriated by employees?When employees are found guilty of misappropriating funds in the workplace, employers are tasked with questions concerning the recovery of the lost funds. However, an issue which is often overlooked, is the employer's responsibilities in terms of Prevention and Combating of Corrupt Activities Act 12 of 2004 (Precca). Image source: Alexander Raths – 123RF.com Reports in terms of PreccaSection 34(1) of Precca places a duty on persons of authority to report certain offences where the quantum of the corruption, theft, fraud, extortion, forgery or uttering of a forged document is more than R100,000. The section provides that any person in a position of authority who has knowledge or suspicion of such an offence has a duty to report the matter to the South African Police Services. The South African Police Service Amendment Act 10 of 2012 (SAPS Act), provides that such a report should be made to a police official in the Directorate for Priority Crime Investigation (DPCI). Thereafter, the National Prosecuting Authority (NPA) will consider the findings of the DPCI and exercise its discretion as to whether charges should be laid. Persons in a position of AuthoritySection 34(2) of Precca provides that any person in a position of authority who fails to report such corrupt activities is guilty of an offence. The following persons hold positions of authority in terms of Precca:
Employers seeking to recover funds misappropriated through the unlawful conduct of their employees, are reminded to reflect on whether they are required to report such conduct to the appropriate authorities. About the authorJacques Van Wyk, Director, Nasheetah Smith, Senior Associate, Werksmans Attorneys |