Rustenburg – A senior official from the North West Department of Education has been fined R20,000 after pleading guilty to fraud involving the creation of ghost employees and the illegal disbursement of public funds. The Rustenburg Magistrates’ Court delivered the sentencing on Friday, 20 June 2025.
The accused, Olebogeng Modikoe, 40, served as a Principal Human Resource Officer in the department at the time of the offence.
According to the Hawks’ Serious Commercial Crime Investigation Unit, Modikoe exploited his access to the department’s payroll system in 2023 to create two fake employees, each granted three-month contracts. Though they never worked for the department, the ghost employees were paid a combined total of R150,000.
Further investigation revealed that the funds were diverted into bank accounts belonging to two individuals, who are currently co-accused and facing ongoing court proceedings.
Modikoe and his alleged accomplices were arrested in March 2024 after the Hawks completed their investigation. He made multiple court appearances before agreeing to a plea and sentencing deal with the State.
He was sentenced as follows:
- Three years’ imprisonment or a R20,000 fine on two counts of fraud
- Two years’ imprisonment or a R10,000 fine on two counts of money laundering
In total, Modikoe can avoid jail time by paying R30,000.
Officials Praise Sentencing as a Win for Accountability
Brigadier Silas Munzhedzi, acting head of the Hawks in the North West, and Dr Rachel Makhari, Director of Public Prosecutions in the province, praised the swift investigation and outcome.
“The sentencing sends a clear message that corruption and misuse of public funds will not be tolerated,” said Brigadier Munzhedzi.
“We will continue to work with our partners to ensure accountability within the public sector.”
The case highlights ongoing issues of corruption and payroll fraud within government departments and underlines the importance of transparent financial oversight in the public sector.
