The multi-billion Pula worth Motor Vehicle Accident Fund (MVA) network has for four months now, been incapacitated by a cyber attack which disrupted and probably damaged its main core IT system.
The suspected ransomware has not been resolved since November 2021. A ransomware is a type of malicious software designed to block access to a computer system until a sum of money (ransom) is paid. MVA would not confirm reports that the cyber-attacker is demanding ransom before he could disinfect their main core IT system.
It is understood that the hackers took advantage of MVA’s vulnerable ICT systems which are old, outdated and have not been updated.
It is over three months since the matter was reported to the Botswana Police, Directorate of Intelligence and Security (DIS) as well as BOCRA, with no solution in sight.
Sunday Standard can reveal that MVA had initially engaged a certain consultant to rescue the situation but could not cure the infection. The MVA which is reported to be hemorrhaging millions of Pula is now on the second consultant.
There are also speculations that the attack may be an inside job, meant to cover up audit issues and delete audit trails. The Fund receives tens of millions of Pula annually from the fuel levy.
In an interview with the Sunday Standard, MVA confirmed that the cyber-attack took place on the 30th of November 2021 when the systems froze and could not undertake their daily operations. The risky inconvenience has affected all the offices nationwide, and their operations have been severely affected as the Fund is only able to offer limited services.
The unknown hackers managed to break into the computer systems are suspected to have stolen, changed and destroyed crucial information.
MVA Chief Executive Officer (CEO) Michael Tlhagwane, confirmed to Sunday Standard that in line with existing protocols, they have notified and engaged the relevant stakeholders, and that they are working around the clock to resolve the challenges.
“We have resorted to offer our clients some services manually. These include medical assistance, funeral expenses benefits, loss of support/income and general customer services,” said Tlhagwane.
He believes that they have improved their systems security protocols to minimize future potential security breaches, though cyber security is complex field.
The Fund recorded a total comprehensive Income of P105.6 million in 2019 in comparison to a comprehensive loss of P242.8 million in 2018. The positive variance is due to Fair Value Gains on available for Sale Investments and prudent management of expenses.
The Fund recorded a Net Deficit of P170.1 million which was a decline from the Net Surplus of P12.9 million recorded in 2018. The asset base however, remained strong at P4.1 billion.
On costs, the Fund recorded Total Expenses of P418.7 million in 2019, which was an increase from P384.4 million recorded in 2018. The increase was attributable to the increase in claims provision which increased trust liabilities and consequently interest expense of trust liabilities.
