1. Your attention is drawn to a fraud scheme that could pose a serious threat to the finances of your school. The fraud scheme could entail the following:
1.1 A school (school A) is contacted by telephone by a person who identifies him/herself as an official from one or other state department and informs the school that an amount of money is due to the school. A suitable reason will be given as why this money is owed to the school and the school will be told that it will be paid into the school’s bank account.
1.2 Later, the same person will contact school A to say that the money was paid into the school’s bank account and that the deposit slip will be faxed to the school. The amount indicated on the deposit slip is however substantially more than the original amount promised to the school. A moment later the school will then again be contacted by the same person and informed that an error has been made and that too much money had been paid to the school. He/She will then provide the banking details of school B and request that the difference be paid over to school B, as that amount is owed them. Later, on the same day or the next, another person claiming to be the principal of school B will phone and confirm that the extra amount deposited is due to his/her school.
1.3 Usually, school A will pay school B without verifying the deposit. Only much later, on receipt of the bank statements, will school A realise that either no deposit was made into the school’s bank account or the deposit was stopped.
2. Schools are urgently requested, should they receive a similar telephone call, to take note of the following:
2.1 Financial allocations to schools are communicated to them on the official WCED letterhead.
2.2 All payments are done electronically. Cash and cheque payments have been phased out by this province.
2.3 A school must insist on a written request for the re-payment of monies purportedly paid in error to them.
2.4 Re-payments must only be effected once the monthly bank statements have been reconciled with the cash book and the School Governing Body has approved the payment. Payments between schools must be avoided as far as possible.
3. Kindly bring the contents of this minute to the attention of all concerned.
4. Your co-operation is appreciated.


SIGNED: EI MEYER
HEAD: EDUCATION
DATE: 2005:10:26