Tembisa Hospital scandal sparks scrutiny of banks’ role

BANKS and other financial institutions are under renewed pressure to detect and report suspicious transactions, particularly those involving public funds.

- ANNIE DORASAMY

This comes in the wake of the Special Investigative Unit (SIU ) report which exposed how officials from the Gauteng Department of Health and a syndicate of dodgy service providers to Tembisa Hospital looted more than R2billion meant for medical supplies.

The report revealed the SIU’s complex investigation of syndicates involving fraud, corruption, money laundering, bid rigging and racketeering between officials and syndicates.

Investigators relied on the Financial Intelligence Centre (FIC) Act to track suspicious payments. However, they still found it difficult to collect certain electronic payment and data evidence.

The South African Banking Risk Information Centre (SABRIC), and the Financial Intelligence Centre (FIC) both financial crime fighting bodies, said banks were required to declare suspicious payments.

“Banks are obligated in terms of the FIC Act to report any suspicious transactions or activities to the Financial Intelligence Centre (FIC), said Louise van der Merwe, media communications liaison manager for SABRIC.