Business Day (Johannesburg)

Nigeria: Auditor-General's Name Used in Internet Scam

Cape Town — Nigerian fraudsters have tried to besmirch the name of one of the pillars of the country's constitutional democracy, the very institution charged with rooting out fraud and corruption in government.

Auditor-general Terence Nombembe had to distance himself yesterday from a 419 internet scam originating in Nigeria and using his name fraudulently.

The 419 scam typically involves fraudulent e-mail letters supposedly from prominent people claiming to need help to access funds. Targeted victims are usually asked to supply their bank details. But instead of benefiting from a fat commission for facilitating the transaction, the victims find their financial resources considerably depleted.

In the latest elaborate version, "Nombembe" asks for assistance to divert $8,5m of South African government money representing its debt to Chili & Co CEO Williams Michael, who allegedly died in car accident in Iraq and so cannot claim the money.

"I will use my position as the auditor-general and present you as the subcontractor to Williams Michael of Chili & Co, thereby giving you the right to received the sum of which is the contract sum approved to be received by Williams Michael of Chili & Co."

The letter goes on to claim that this outstanding debt of the apartheid government could not be paid because of balance of payments problems.

But having "received International Monetary Fund assistance to ease its balance of payments problems", the government could now "settle its outstanding debts to foreign firms".

"Nombembe" was said to have discovered the debt to Williams Michael "during my recent investigations and auditing of the financial statements and records of foreign contractors, public entities and the national government".

"I decided to contact you to join hands with me to receive these funds because if not claimed the bank will recall the money to the treasury as an unclaimed deposit. In view of this, should you indicate any positive interest, let me know your terms regarding remuneration."

Spokesman Africa Boso distanced the auditor-general's office from the scam. "Part of our responsibility as an institution is to contribute to good governance in the public sector. We believe that fraudulent schemes such as this one not only tarnish our reputation as the supreme audit institution, but also paint a negative image of our country.

"We warn the public not to fall for this scam, and request people to report overtures of this nature to the police," Boso said.


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