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The Tshwane metro has placed four officials from its finance department on precautionary suspension due to their alleged involvement in an organized syndicate that manipulated the metro’s reimbursement system.
These suspensions follow a comprehensive investigation that already began in May 2023, after irregularities were detected on several municipal accounts.
Selby Bokaba, spokesperson for the Tshwane metro, says the investigation initially identified seven officials as suspects. However, further analysis by the city’s forensics unit showed that the core of the operations lay with a syndicate of four officials and their external accomplices.
According to Bokaba, the system was exploited in a calculated manner. “The group allegedly identified municipal accounts with credit balances and passed these details on to partners. The partners then submitted falsified refund claims, posing as the legitimate account holders.”
The money was eventually deposited into a single private bank account of a member of the public. It is estimated that approximately R1,585 million was embezzled in this way.
The case has since been referred to the Falcons. One of the officials involved resigned before disciplinary action could be taken, but the criminal investigation continues.
The four officials and a member of the public appeared before the specialized commercial crime court on March 4 and were released on warning. The case was adjourned until April 29. A warrant for the arrest of a former official was also issued, after he failed to appear at court proceedings.
Bokaba says the metro is determined to recover the lost funds. “The investigation is unfolding against the backdrop of wider efforts to strengthen Tshwane’s anti-corruption framework. These include revisions to payroll fraud detection and enhanced verification checks.”
The metro, meanwhile, reaffirmed its zero-tolerance approach to fraud and corruption and stressed that the administration remains committed to protecting public funds.
“We remain committed to protecting public funds and ensuring that anyone involved in misconduct is held accountable,” says Bokaba.