http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A812488
Editor at Large
A NUMBER of Nedbank staff members and former staff members are being investigated in connection with the financial irregularities uncovered in May at one of the bank’s law firms, Findlay Niemeyer, says Willem Kruger, the chief legal adviser for Nedbank.
Kruger said yesterday most of the individuals concerned were no longer employed by Nedbank. “Appropriate disciplinary action will be taken against staff where there is evidence of their involvement in this case,” he said.
“We are not in a position to reveal further details regarding staff involvement as this may compromise the investigation and the disciplinary action contemplated by the bank.”
In May Nedbank decided to go public with the news it had been told by a senior Findlay Niemeyer partner that the law firm had uncovered accounting irregularities in its foreclosures department on accounts under the control of one of its attorney partners.
Nedbank says it requested the preliminary investigation after the attorney in question was unable to explain long delays in the registration of properties in possession that had been sold, and in the handling of client foreclosures. Nedbank then appointed PricewaterhouseCoopers to investigate.
Meanwhile, according to Philip Wessels, Nedbank’s group chief risk officer, Findlay Niemeyer removed the attorney in question and reported the matter to the law society, the Attorneys Fidelity Fund as well as Professional Indemnity Insurance.
It has been suggested that the Nedbank staff under investigation are from the home loans and vehicle financing divisions of Nedbank’s Braampark office in Johannesburg, but this information was not verified by Nedbank. Calls to Braampark confirmed some staff in those arms had not been at work.
Wessels said in May it was unlikely there had been any negative effect on the accounts of clients whose files had been handed over to the law firm for collection. “Yet, should we determine these clients were affected in any way we will see to it that they do not suffer any financial loss,” Wessels said.
Staff at Braampark appear to have been told that Nedbank’s head office will update them next month.
