The City of Tshwane has suspended several municipal officials following the uncovering of an alleged fraud syndicate that targeted the city’s financial systems through fake refund transactions.
City of Tshwane spokesperson Selby Bokaba detailed the matter, explaining that suspicious refund transactions were first detected in May 2023 within the finance environment, specifically the revenue management division.
An internal investigation was launched, which revealed what appears to be an organised syndicate involving city officials colluding with members of the public. The scheme reportedly worked as follows: officials identified municipal accounts showing credit balances—indicating that the city owed money to those account holders. They then channeled fraudulent refunds into a single private bank account controlled by the participants, from which funds were withdrawn.
Some of the implicated officials have already appeared in court on charges related to the fraud, with the scheme described as having siphoned public funds over time.
Investigations are ongoing, and the exact scale remains uncertain as the fraudulent activities may span all seven regions of the city and potentially involve other departments. Thus far, approximately a little over R1.5 million (with recent updates indicating around R1.58 million in suspected fraudulent transactions) has been identified as having been transacted through the scheme.
In response, the city is verifying payroll processes and strengthening verification procedures across the entire value chain to prevent further irregularities.
Selby Bokaba urged both community members (ratepayers) and employees to remain vigilant. He advised the public not to be misled by individuals claiming to be city officials, particularly if contacted via cell phone; instead, they should insist on official verification such as an email address from the city. For employees, he warned that being found guilty and dismissed would result in forfeiture of employer contributions to benefits, including pension funds—recovering only personal contributions.
The city encouraged anyone with information about the scam to come forward as potential whistleblowers and contact the municipality directly.
Investigations continue, with efforts underway to recover any losses in line with legal processes and court outcomes.