SowetanLive reports that a staggering R100m meant to benefit members of the police and other public safety workers has disappeared from Popcru Group of Companies (PGC), the investment arm of the Police and Prisons Civil Rights Union (Popcru).
A letter written by auditors, SNG Grant Thornton, indicates that a company called PGC Management Services (PGCMS) received referral fees that were supposed to be paid back to Popcru when new members took up investment products from companies owned by the union. "Upon inspection of the bank statement of Workers Life Direct, it was identified that referral fees, amounting to approximately R100m, were paid over to PGCMS as opposed to Popcru or PGC. We cannot make a determination as to whether the above mentioned fees were paid across from PGCMS to Popcru and PGC, as PGCMS is unaudited," states the letter sent by the auditors to Workers Life Direct, one of the companies owned by the union. Workers Life Direct is a broker selling insurance products underwritten by Workers Life Assurance and Workers Life Insurance, all under the PGC. SNG Grant Thornton spokesperson Sihle Cengimbo reported that their relationship with PGC ended in October. "As a result of the pervasive nature of the impact of these findings, our audit risk has increased to a level which we cannot mitigate for us to continue being external auditors of PGC," SNG Grant Thornton said in its departure letter. City Press reported a week ago on the suspension of PGC CEO Reuben Mdletshe for misconduct. Mdletshe has since been fired as CEO. On Thursday, things turned worse for Mdletshe when the Hawks announced they had secured a warrant of arrest for him and another official, Robert Sherriff. A Hawks spokesperson said the two were wanted in connection with an alleged plot to kidnap and murder senior leaders and members in the union.
- Read the full original of the report in the above regard by Penwell Dlamini at SowetanLive
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