Former KPMG Bursary Specialist Charged in R16 Million Fraud Scheme

Fidelis Moema, a former bursary specialist at KPMG, has been charged with fraud and money laundering for allegedly stealing R16 million meant for bursary recipients between 2019 and 2022.

Moema was arrested two weeks ago along with his alleged accomplices, Trevor Machimane and Lebohang Sigubudu, a Tshwane Metro Police sergeant.

According to investigators, Moema diverted bursary funds from KPMG into the accounts of friends, business associates, and his own account. He allegedly created a web of companies and individuals to receive the misdirected funds before rerouting the cash back to himself. Machimane and Sigubudu are accused of receiving over R1 million and R600,000 respectively from the fraudulent activities and transferring a portion of the money to Moema.

KPMG fired Moema in November 2022 after a disciplinary process found him non-compliant with the firm's policies. However, the alleged bursary scheme fraud was only uncovered after his dismissal, prompting KPMG to approach the Hawks. Despite Moema's actions, KPMG says that all intended bursary beneficiaries were still awarded their funds.

The charges against Moema involve 431 counts each of fraud, theft, and money laundering related to the irregular payments made from KPMG to his associates' accounts. Machimane had offered to turn state witness against Moema, but prosecutors declined, stating they have sufficient evidence to secure a guilty conviction.

Moema is also accused of deceiving his current employer, Nedbank, about the circumstances of his dismissal from KPMG. His social media accounts depict a lavish lifestyle, including sports cars, French champagne, and trips to Santorini, Greece, raising questions about the source of his wealth.

The three accused have pleaded not guilty to all charges. A ruling on their bail application in the Johannesburg Commercial Crimes Court is expected to be delivered on Friday. They remain in custody pending the decision.

Why this matters: This case highlights the importance of robust financial controls and oversight within large corporations to prevent the misappropriation of funds intended for charitable purposes. It also underscores the need for thorough background checks and ongoing monitoring of employees in positions of trust.

The state has concluded its investigation and is confident it has a strong case against the accused. "We have more than enough evidence to prove that the accused abused their positions and laundered money. They created an elaborate scheme to enrich themselves at the expense of underprivileged students," said prosecutor Riana Williams. If convicted, Moema and his co-accused could face lengthy prison sentences given the severity of the charges and the substantial amount of money involved in the alleged fraud.

Key Takeaways

• Fidelis Moema, a KPMG bursary specialist, charged with R16M fraud and money laundering.
• Moema diverted bursary funds to friends, associates, and his own accounts via a web of companies.
• Moema's alleged accomplices, Machimane and Sigubudu, received over R1M and R600K respectively.
• KPMG fired Moema in 2022, but the fraud was only uncovered after his dismissal.
• Moema faces 431 counts each of fraud, theft, and money laundering; prosecutors confident of conviction.