Former Wits manager arrested in US for allegedly laundering HIV/AIDS funds
A former University of the Witwatersrand senior manager has been arrested in the US for alleged money laundering.
The university confirmed the former senior manager from the Wits Reproductive Health and HIV Institute (WRHI) was arrested following allegations of misappropriating funds involving about $230‚000.
Although the university did not disclose the suspect’s name‚ the US Office of the Inspector General earlier named him as South African HIV consultant Dr Eugene Sickle‚ whom it said had been arrested on Wednesday for money laundering linked to US funding for HIV/AIDS programmes.
“Special agents apprehended Dr Sickle in Washington‚ DC‚ for offences committed in relation to USAID-supported HIV/AIDS programmes in SA‚” the US Office of the Inspector General said in a press release.
The office monitors USfunded programmes which fall under the US Agency for International Development (USAID).
Wits said the alleged irregularities were identified by the WRHI, which embarked on an investigation. It said the suspect was questioned and that he resigned from his position.
“USAID was informed and the WRHI appointed KPMG to conduct a forensic audit. The WRHI‚ USAID‚ KPMG and the Office of the Inspector General in the US co-operated throughout the investigation.
“A criminal case has also been opened with the South African Police Service‚” Wits said in a statement. It gave an assurance that donor funds remained safe.
“The university’s strong systems‚ quick action and cooperation with partners ensured that these alleged fraudulent activities were identified‚ managed and pursued quickly.
“It is estimated that the total funds allegedly misappropriated amounts to $230‚000‚ the bulk of which will be covered by insurance. The project will not suffer any reduction in funding and there will be no direct loss to USAID‚” the university stated.
As a precautionary measure‚ the WHC and the WRHI had undertaken a review of all grants and activities and no other irregularities had been identified.
“Wits entities will continue to work with all relevant parties to finalise the matter. The management of this case demonstrates that the university will deal decisively with any illegal activity‚ including fraud,” said the university.