MAHIKENG – A former Botselo Mills Group Financial Manager was convicted on multiple counts in an R8.7 million fraud case that crippled the company.

Reginald Scholtz (62) was convicted by the Specialised Commercial Crime Unit (SCCU) Court sitting at the Molopo Regional Court in Mahikeng on Friday 16 October after being found guilty on multiple charges.

The National Prosecuting Authority (NPA) of South Africa has welcomed Scholtz’s conviction on 52 counts of fraud. His conviction stemmed from siphoning funds from his former employer between 2017 and 2022. An exact sentencing date is yet to be announced.

Lindiwe Mabasa, spokesperson for the NPA in North West, said compelling evidence of wrongdoing was presented in court. “Scholtz manipulated the company’s payment system by creating the impression that payments were being made to service providers for services rendered. The funds were instead transferred into bank accounts linked to him. The transactions were recorded as legitimate payments to service providers,” she said.

These fraudulent transactions were uncovered during an audit in 2023, when the company’s chartered accountant identified unaccounted-for payments in the payment system. “The discovery prompted an investigation, which led to Scholtz’s suspension and subsequent arrest,” said Mabasa.

She said Scholtz pleaded not guilty to all 61 charges. “Scholtz was convicted on 52 counts of fraud involving more than R8.7 million in unauthorised transactions from the company’s account,” said Mabasa. “After considering the evidence, the court acquitted Scholtz on nine counts relating to petty cash transactions and payments to other service providers,” Mabasa explained.

Mabasa said that 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.

“He maintained that only three of the accounts belonged to him and claimed that these 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,” said Mabasa.

Mabasa said Advocate Nkhetheni Mudau, the state prosecutor in the case, argued that Scholtz had abused the position of trust placed in him by his employer and deliberately engaged in fraudulent conduct that caused significant financial prejudice to the company.

This brings the total to two former employees convicted for separate, multimillion-rand fraudulent schemes that crippled Botselo Mills group. Jan Jacobus Van Niekerk (39) was sentenced to 15 years’ direct imprisonment in April last year. He was found guilty on 157 counts of fraud and 53 counts of money laundering. Van Niekerk held the position of financial accountant.

Investigations revealed that between January 2017 and July 2022, Van Niekerk fraudulently created authorisation forms to release funds, misrepresenting transactions to divert company money into his six personal bank accounts. Posing as legitimate service providers, he siphoned more than R8 million from the company over six years.

ALSO READ: Blouberg Municipal Manager, two company directors remanded in R16m fraud case