Augrabies woman jailed after siphoning nearly R900k in payroll scam

A PAYROLL clerk from Augrabies was sentenced to six years’ direct imprisonment after being convicted of 242 charges of fraud amounting to R896,506.95 and 242 charges of money laundering.

Northern Cape National Prosecuting Authority (NPA) spokesperson Mojalefa Senokoatsane said the accused, Elizabeth Christina Smith, was sentenced in the Specialised Commercial Crime Court sitting in Augrabies.

“The court heard that Smith was employed at a company based in Augrabies, where she was entrusted with payroll responsibilities. Between February 2017 and July 2021, she unlawfully manipulated the payroll system by reactivating dormant seasonal employees as reinstated workers. She processed salary payments in their names but diverted the funds into her own bank account and the bank accounts of her children,” said Senokoatsane.

“Her employer, an international company with a global footprint, uncovered the irregularities. The matter attracted international attention due to the company’s operations across multiple jurisdictions.

“During sentencing proceedings, State Advocate Wilhelmus Els argued that the accused occupied a position of trust within the company and grossly abused that trust for personal enrichment over an extended period. The State submitted that such offences undermine corporate governance, erode employer confidence, and negatively impact the broader economy.”

Senokoatsane said Smith was sentenced to six years’ direct imprisonment on the fraud counts and four years’ imprisonment on the money laundering counts, with the sentences to run concurrently.

“The NPA reiterates its commitment to prosecuting complex commercial crimes and ensuring that individuals who abuse positions of trust for personal gain are held accountable,” he added.