Capitec employee debarred for fraudulent debit orders to boost bonuses

The Financial Services Tribunal dismissed the appeal of Vusumuzi Mtshali, a former Capitec Bank consultant, who was debarred for his role in a fraudulent scheme involving debit-order switches. The tribunal found that Mtshali knowingly misrepresented the debit-order switches, which significantly undermined the bank's performance-monitoring processes.

Capitec's investigation revealed 162 incidents involving 329 debit-order switches over a six-month period, with 62 attributed to Mtshali. Despite the distinct processes for bank-statement and SMS switches, Mtshali's actions suggested he deliberately classified certain bank-statement switches as SMS transactions. The bank's policy required consultants to validate bank-statement switches, while SMS switches were verified by the branch.

Evidence showed Mtshali understood the difference between the two methods but failed to follow the proper procedures. The tribunal rejected the argument that Mtshali's conduct was excused because it was common practice at the branch or followed by other employees. While the tribunal upheld his debarment, it noted that Capitec's decision could have been more transparent by specifying the exact actions that led to the debarment.