CIPRO COMBATING FRAUD

The Companies and Intellectual Property Registration Office (CIPRO) is taking a hard stance against fraud. The registration office has suspended an employee and launched a forensic audit in a move to combat fraud.

CIPRO learnt today of three more companies which directors were allegedly changed fraudulently. These companies are Remag, Ntiro Technologies and News Café Rivonia.

CIPRO immediately launched a preliminary investigation which led to the suspension of one employee as a precautinary measure. Although the indications are that transactions were done manually, CIPRO has launched a forensic audit on these transactions.

This matter was also referred to the law enforcement authorities to ensure that no stone is left unturned in dealing with any identified fraudulent activity. CIPRO joined forces with various law enforcement authorities in an effort to cull the recent spate of fraudulent, un-mandated amendments to directors of companies.

This co-operation is imperative to prevent other fraudulent activities, such as the diversion of legitimate tax refunds into the "dummy" bank accounts of fraudulent entities. Furthermore, CIPRO will continue to strengthen its internal controls and additional assurance checks are implemented to detect possible fraudulent activities at an early stage.

In principle CIPRO takes fraud seriously and where adequate evidence is discovered decisive steps are taken. It is advised that companies remain vigilant in ensuring that they check their directorships and report any anormalities.

Fraudulent acts are punishable by law. Customers and the public are encouraged to report all suspicious or fraudulent behavior via e-mail, to the following address: [email protected] or [email protected] or telephonically on the fraud hotline: 0800 701 701.

Statement issued by Dr Elsabé Conradie, CIPRO, January 21 2011

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