SABC CPO Suspension points to need for employee and supplier vetting

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RudiKruger.jpgWith the recent suspension of the CFO of the SABC due to possible procurement irregularities and the allegations of falsifying credentials within the broadcaster, a strong warning goes out to many large corporate companies who are not taking seriously the vetting of personal information, Rudi Kruger, General Manager of LexisNexis Risk Management, told SmartProcurement.

The CFO's suspension by the public broadcaster's board was based on the information the board received from an investigation conducted by external forensic lawyers into procurement, confirmed SABC spokesman Kaizer Kganyago.

“That investigation has already resulted in the suspension of the acting head of procurement. Because procurement falls under the CFO, and because the investigation implicates the CFO, the board suspended her," said Kganyago.

The vetting of personal information in any department has always been one of low priority, with many companies not realising the legal impact and costly implications this could have on their business, notes Kruger.

Many companies see the initial interview when hiring staff through recruitment agencies as enough to ensure a trusted working relationship between employee and employer for the duration of the working contract. This is incorrect.

“Culprits of fraud and corruption are forever looking for new ways to improve the substantial amount of money in their back pockets and will go to great lengths to continue doing so,” says Kruger. “The only way to ensure this kind of crime is prevented is to ensure the best possible human resource and procurement vetting processes are in place, prior to the culprits even entering the building.”

Companies cannot afford to overlook any employee of a company, even those at the top.

Five officials at the Limpopo department of Health have just been released on bail following a probe into a R10-million scandal and allegations of family owned beneficiaries of tenders.

The tender in which the SABC CFO may be implicated had a value of R500-million.

How much more are companies willing to lose before they realise that employee and supplier vetting are of utmost importance?

LexisNexis Risk Management, an information solutions company, has developed intelligent vendor and employee monitoring systems to assist professionals in making decisions with confidence and speed.

RefCheck, an employee background screening solution, and ProcureCheck, a first-of-its-kind procurement vetting and monitoring tool, provide companies with peace of mind when it comes to managing risks related to human resource and procurement processes.

For more information on ProcureCheck and other services email LexisNexis on contact@lnrm.co.za.

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