South Africa’s public sector payroll is under intense scrutiny as evidence mounts that thousands of ‘ghost employees’ drain government resources and inflate spending. From Prasa’s 2 143 suspicious employees in 2022, more than half of whom resigned during investigations, to recent uncoverings of R6.4m paid to ghost workers in Mpumalanga, the scope of the problem is alarming. The Special Investigating Unit (SIU) has been ordered by President Cyril Ramaphosa to probe these irregularities, including fraud and tender manipulation.

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ActionSA highlighted that the worst offenders include Prasa, the Department of Education, and the South African Police Service (SAPS), with extensive research indicating the scale of the issue. Municipalities like Msunduzi, in KwaZulu-Natal, identified 120 ghost workers in 2021, while Tshwane uncovered nearly 500 unverified workers in its public works programme. Even with salary freezes and audits, the problem persists, costing millions each month in unnecessary wages.

The Department of Public Works and Infrastructure reports over 5 000 non-working staff receiving salaries, and the Department of Public Service and Administration (DPSA) is now working to clean up the payroll system, which employs over 1.2 million public servants. Parliament’s Portfolio Committee demands concrete data such as names, locations, and financial impacts, to hold officials accountable and implement disciplinary actions. Lax HR controls and outdated paper-based systems have made it easy for ghost employees to thrive, but recent efforts aim to leverage cross-referenced data and biometric verification to root out fraud.

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Eliminating ghost workers could save billions annually. For example, Prasa’s efforts saved R200m, and estimates suggest tens of thousands of ghost employees nationwide cost the fiscus billions each year. Globally, ghost employees account for about 8% of occupational fraud cases, and South Africa’s lax controls likely push this figure even higher given its R800b wage bill and additional R85b paid to state-owned enterprises.

Addressing this issue isn’t just about saving money, it’s about restoring integrity, efficiency, and trust in government. With stronger audits, better data management, and political will, South Africa can significantly cut waste and improve service delivery for its citizens.

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