Wendy Dondolo|Published
A former group financial manager at Botselo Mills has been convicted on 52 counts of fraud involving more than R8.7 million after diverting company funds into bank accounts linked to him through allegedly fraudulent payment transactions spanning five years.
Reginald Scholtz, 61, was convicted in the Specialised Commercial Crime Unit (SCCU) Court sitting at the Molopo Regional Court in North West following a prosecution by the National Prosecuting Authority (NPA).
The fraudulent transactions were committed between 2017 and 2022, while Scholtz was employed as the company’s group financial manager.
Millions diverted through manipulated payments
NPA spokesperson Lindiwe Mabasa said Scholtz manipulated the company’s payment system to make it appear as though payments were being made to service providers for services rendered, when the funds were instead transferred into bank accounts linked to him.
“The transactions were recorded as legitimate payments to service providers,” Mabasa said.
The fraud was uncovered during an audit in 2023 after the company’s chartered accountant identified unaccounted-for payments in the payment system.
“The discovery prompted an investigation, which ultimately led to Scholtz’s suspension and subsequent arrest,” Mabasa said.
Scholtz pleaded not guilty to 61 charges
Scholtz was initially charged with 61 counts of fraud relating to unauthorised transactions involving payments from the company’s account.
He pleaded not guilty to all the charges.
The State, represented by Advocate Nkhetheni Mudau, argued that Scholtz had abused the trust placed in him by his employer and deliberately engaged in fraudulent conduct that caused significant financial prejudice to the company.
“In his defence, Scholtz argued that the company had failed to prove that the accounts receiving the payments did not belong to legitimate service providers,” Mabasa said.
He maintained that only three of the accounts belonged to him, claiming they were used to manage petty cash on the instructions of his managers.
He further claimed that he feared losing his job if he failed to comply with what he regarded as lawful instructions.
After considering the evidence, the court acquitted Scholtz on nine counts relating to petty cash transactions and payments to other service providers.
“He was convicted on the remaining 52 counts of fraud involving more than R8.7 million,” Mabasa said.
NPA vows to pursue commercial crime
The Director of Public Prosecutions in North West, Dr Rachel Makhari, welcomed the conviction and commended Mudau and the SCCU team for ensuring that Scholtz was held accountable.
“This conviction demonstrates the NPA’s determination to prosecute commercial crime and hold accountable those who abuse positions of trust for personal financial gain,” Makhari said.
The NPA reiterated its commitment to tackling serious commercial and organised crime, warning that it would continue pursuing individuals who exploit positions of trust.
“Through its specialised prosecution units, the NPA will continue to pursue those who exploit positions of trust and threaten the financial security and assets of businesses, institutions and communities,” Mabasa said.
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