Despite problems in Nigeria, Standard Bank said it anticipates more growth from its Africa operations. (Waldo Swiegers/Bloomberg via Getty Images)
A former Standard Bank software expert, who also happens to be an illegal immigrant, allegedly stole nearly R6.3 million from the financial institution by adding zeros to inflate the amounts in transactions conducted by people he supposedly knew.
According to the National Prosecuting Authority (NPA), in less than a month between 13 July and 3 August 2017, Henry McMurray interfered with 25 transactions at Standard Bank and allegedly made off with R6 279 716.11 through bogus payments before he was caught.
The NPA’s charge sheet shows how McMurray allegedly used the Standard Bank accounts of six “acquaintances” — including his co-accused Augustin Ifeanyi Anosike — to “interfere and/or inflate the balances of those accounts for the benefit of himself (McMurray) or the benefit of [his acquaintances]”.
An example of the scam was a 21 July 2017 transaction, when R47 was actually paid into Anosike’s account, but the amount was “inflated” by adding three zeros at the end of the deposit to reflect that Anosike had R47 000 in the bank.
The state claims that McMurray began his crimes on 13 July 2017 when he allegedly changed the R500 reflected in Anosike’s account to R500 000, again by adding three zeros.
Eight days later, McMurray allegedly “interfered” with the R60 in the account of an acquaintance, whose name is known to the Mail & Guardian, to allegedly score his biggest payout in a single transaction by changing the balance to R1.6 million.
“The amounts … would then be withdrawn and/or transferred from the accounts, notwithstanding the fact that there was no … actual credit available in those accounts,” reads the charge sheet.
McMurray was able to commit these “crimes” due to his position at Standard Bank, where he was, among other duties, responsible for processing and maintaining the technical aspects of software company SAP’s system, as well as supporting staff to resolve IT-related issues “that could compromise the integrity and the availability of the SAP system”.
McMurray’s biggest payday, according to the NPA, was on 3 August 2017, when the accused allegedly interfered with eight transactions — R144, R181, R295, R325, R268, R142, R186 and R376 — to net himself more than R1.9 million.
He is also accused of transferring R518 216.11 to his Standard Bank account, the last fraudulent transaction before he was nabbed.
The theft trial of McMurray and his co-accused Anosike, whose legal status in the country is also under question, was meant to start on Tuesday and Wednesday, but had to be postponed to April pending the finalisation of McMurray’s high court application to reinstate his South African citizenship.
The trial is scheduled to take place in the Johannesburg specialised commercial crimes court, sitting in Palm Ridge.
McMurray’s application follows the home affairs department successfully rescinding his citizenship through the high court after it emerged that he was actually from West Africa, and had obtained his residence status in South Africa illegally.
McMurray’s cover was blown during his 2017 bail application, when he produced a “fraudulent” South African identity document to prove that he was a citizen.
In addition to the theft charges he faces, he has also been charged on two counts of contravening the Immigration Act for producing South African papers “whilst he knew that — in truth and in fact — he was not a South African citizen and that his identity document was obtained fraudulently”.
“This conduct by the accused was calculated to cause prejudice either actual and/or potential by inducing the court to grant him bail, as well as and/or to facilitate his stay and movement within the borders of the Republic of South Africa in contravention of the provisions of the [Immigration Act],” the state asserted.
It added that any person found contravening the Immigration Act “shall be liable on conviction to a fine or imprisonment not exceeding eight years”.
The second Immigration Act contravention charge McMurray faces — of remaining in South Africa “without valid documents and/or authority to do so” — carries with it imprisonment of up to 15 years “without an option of a fine”.
Both accused, who have been denied bail and are in custody, have yet to plead to the charges.
McMurray and Anosike face 25 counts of fraud — or the alternative 25 charges of theft — with Anosike facing an additional charge of acquisition, possession or use of proceeds of unlawful activities.
They cut lonely figures inside the accused dock in court this week, with chains at their feet and wearing tattered clothing, despite the accusation that they had made off with a small fortune from Standard Bank.
When their trial resumes in April, the state’s first witness, Judy Joseph, is scheduled to testify against them, having been the investigator who nabbed the accused fraudster.
Joseph, who the M&G understands has since retired, worked for Standard Bank for about 40 years.
A separate case of fraud involving a financial institution is that of the R420 million in fraudulent First National Bank guarantees granted to companies linked to medical doctor Mahendren Munsamy.
As the M&G reported last week, Munsamy is facing fraud, money laundering and corruption charges — among other counts — for allegedly tricking FNB into granting him the guarantees to purchase large amounts of fuel for Sasol, which allegedly did not get paid for the sale.
So intricate is Munsamy’s alleged crime that FNB and Sasol are embroiled in litigation against each other, according to an affidavit from Malini Mudaly, the head of legal in FNB’s premium division, which forms part of the state’s high court case against Munsamy.
The doctor allegedly bribed an FNB employee with about R2 million to get the guarantees.
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