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Tuesday, April 30, 2002 - Web posted at 9:20:24 pm GMT

A FRAUD scam uncovered at the University of Namibia (Unam) earlier this year has cost the institution over N$1,5 million.

To date, eight administrative staff members have been suspended in connection with the scam.

Several weeks ago, the University asked auditing firm, Niehaus and Company to determine the magnitude of the fraud in which staff, acting in collusion with students, allegedly scored thousands of dollars.

According to well-placed sources at the tertiary institution, preliminary findings indicate that the fraud cost Unam over N$1,5 million.

Up to 75 students, some of them indebted to the University, are alleged to have collaborated with Unam employees to swindle the institution out of large amounts of money, said the sources.

Staff implicated in the fraud constantly changed the money that students owed Unam in student fees. They "credited" the accounts of some students who in fact owed Unam.

The students then withdrew the credited amounts and shared the cash with the employees who apparently gave them "commission".

Sources quoted Niehaus & Co as concluding that "student debt was abused extensively by students working hand-in-hand with (Unam) employees", while staff "played around with figures" to cover up their crimes.

Students heavily indebted to Unam ended up pocketing over N$244 000 which they later shared with some Unam staff members, a source said.

Some teachers and Unam staff allegedly took over N$123 000 in dubious circumstances from the Mathematics and Science Teachers Programme (Mastep).

It has also been established that a suspended staff member had circumvented procurement procedures by opening his own company from which the University bought its stationery and other goods.

Possible losses arising from this are still being investigated by the auditing firm.

Contacted for comment on the preliminary findings of the probe, Unam spokesman Edwin Tjiramba said: "I will be very hesitant to comment on one piece of information. At this point I will not be able to react to bits and pieces of information."

He said once the institution has been presented with all the findings, it would be able to issue a detailed statement.

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