Tshwane suspends employee in R10m ‘Ghost Account’ fraud case

Tshwane has suspended a Finance Department employee flagged for involvement in swindling the municipality out of over R10-million in eight months.

An internal investigation identified the employee, along with two colleagues, as allegedly being involved in the fraudulent activities.

The investigation uncovered more than 200 transfers amounting to more than R10-million from various municipal user [customer] accounts into a ghost municipal account.

Metro spokesperson Selby Bokaba said the employee was placed on suspension on Tuesday, March 25.

Bokaba said police arrested two suspects and the Pretoria Magistrate’s Court later granted both bail each, but only one could pay the R10 000. The other remains in custody at Kgosi Mampuru Correctional Services.

“The third employee, who is in the law enforcement’s crosshairs, has been evading arrest through hospital admission after hearing that police were hot on his heels,” he explained.

He said talks are at an advanced stage with the Asset Forfeiture Unit of the National Prosecution Authority to explore the possibility of freezing the trio’s assets, with the ultimate objective to forfeiting them to the state.

Tshwane had commissioned a Group Audit & Risk (GAR) probe after noticing the suspicious transfers.

“The in-depth investigation by GAR’s Ethics Management and Forensic Services Division uncovered more than 200 transfers of more than R10-million from various municipal customer accounts into a municipal ghost account from May 2021 to January 2022,” said Bokaba.

He added that the modus operandi of the racket bore the hallmarks of a syndicate.

He said an employee, working in cahoots with outsiders that have an account with the municipality, creates an impression that the account has been paid up by moving the owed amount into another city account. The outsider would then pay a portion of their bill to the city employee.

Bokaba said in the city’s endeavour to eliminate the practice of opening criminal cases simply to have a case number, a directive was issued to the investigation team that referrals of criminal cases to the police should take place within the ambit of a forensic investigation to foster an effective collaboration with law enforcement agencies.

He said in an unrelated but similar matter, the investigation team has also requested assistance from the police to investigate another alleged syndicate operating from within Housing Company Tshwane (HCT), in which an identified leasing administrator and a leasing supervisor are alleged to have facilitated the granting of lease contracts to unsuitable and unqualifying members of the public in return for cash payments.

“These unqualifying members of the public end up not paying rent, resulting in a financial loss to HCT. The implicated officials were served with suspension letters last Thursday, while the internal forensic investigations are underway,” Bokaba concluded.

Tshwane has significantly disrupted the activities of two syndicates that were fleecing the city of revenue:@CityTshwane @nasiphim

An employee from the City’s Finance Department has been placed on suspension today after internal investigations had fingered him and two of his…

— Yusuf Abramjee (@Abramjee) March 25, 2025

Police were approached to confirm the arrest but said they were unable to provide confirmation.

*Please note this article has been amended

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