The Tshwane metro has placed officials from its Finance Department on precautionary suspension after they were implicated in alleged irregular financial transactions linked to fraudulent municipal refund payments.

Metro spokesperson Selby Bokaba said the suspensions form part of measures to safeguard public funds while criminal proceedings continue. “The metro has placed the implicated officials on precautionary suspension as a decisive step to safeguard public funds and to weed out corruption, while a criminal case against the alleged culprits proceeds before the courts,” he said.

Four metro officials and one member of the public recently appeared before the Specialised Commercial Crime Court. One former municipal official failed to appear, and a warrant for arrest was issued.

“All the accused were released on warning and remain subject to the conditions set by the court. The matter has been postponed and the next court appearance is scheduled for April 29,” Bokaba said.

According to Bokaba, the matter stems from an investigation launched in May 2023 after suspicious refund payments were detected across several municipal accounts. The metro’s forensic investigation reportedly uncovered a scheme in which officials allegedly worked with external accomplices to defraud the municipality.

“Acting on a formal request from the Finance Department, the metro’s Forensic Unit conducted a detailed review of refund processes within the revenue management division. The investigation confirmed that irregular transactions had occurred,” Bokaba said.

Initial enquiries identified seven officials as suspects, but further analysis narrowed the focus to what investigators believe is an organised syndicate. “The group is believed to have identified municipal accounts with credit balances and shared the details with partners who then submitted fraudulent refund claims while impersonating legitimate account holders,” Bokaba said.

Investigators found that the fraudulent refunds were allegedly directed into a single private bank account belonging to a member of the public. “This mechanism allegedly enabled the syndicate to extract funds from the municipal system over a period of time,” he added.

The metro referred the matter to the Directorate for Priority Crime Investigation (the Hawks). Investigators, working with the metro’s Forensic Unit, compiled evidence that led to charges against four officials and one civilian whose bank account was allegedly used in the scheme. One implicated official resigned before disciplinary proceedings could begin; the remaining officials face internal disciplinary processes alongside criminal charges.

Bokaba said investigations have so far identified about R1.585-million in suspected fraudulent refund transactions. “Any appropriate steps regarding the recovery of losses will be pursued in line with the outcome of the court proceedings and applicable legal frameworks,” he said.

The metro reiterated its commitment to rooting out corruption and strengthening financial oversight. “The metro maintains a zero-tolerance stance on fraud and corruption and remains committed to safeguarding public funds and ensuring that those responsible for wrongdoing are held accountable,” Bokaba said.

He added that the investigation unfolds against the backdrop of broader efforts to strengthen Tshwane’s anti-corruption framework, including payroll-fraud detection reviews and enhanced verification controls across municipal financial systems.

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