The City of Tshwane has suspended several officials from its Finance Department after they were implicated in alleged irregular financial transactions linked to a suspected fraud scheme worth about R1.585 million.
Municipal authorities confirmed that the suspensions are precautionary and intended to protect public funds while criminal proceedings against those accused continue through the courts.
According to the city, the officials were identified during an investigation into suspicious refund transactions that were detected across multiple municipal accounts. The investigation first began in May 2023 after irregular activity within the municipality’s revenue management system raised concerns among financial oversight teams.
City spokesperson Selby Bokaba said the matter has now been formally enrolled before the Specialised Commercial Crimes Court, marking what the municipality describes as a significant step in addressing fraud within its financial systems.
“The matter is now formally before the Specialised Commercial Crimes Court, marking an important step in the city’s efforts to address fraud and reinforce accountability within the municipal financial systems,” Bokaba said.
He explained that the investigation began after the Finance Department requested a detailed forensic review of refund processes within the Revenue Management Division.
Forensic Investigation Uncovers Suspected Syndicate
The forensic investigation confirmed that irregular transactions had indeed taken place and initially identified seven municipal officials as potential suspects.
However, as investigators analysed the financial records and internal processes further, the scope of the investigation narrowed to what authorities believe was a coordinated syndicate involving four city officials working together with external accomplices.
According to Bokaba, the group allegedly targeted municipal accounts that had credit balances. Once identified, the account details were reportedly shared with partners outside the municipality, who then submitted fraudulent refund claims while impersonating legitimate account holders.
“The group is believed to have identified municipal accounts with credit balances and channelled these details to 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 who is now also facing charges in connection with the scheme.
Authorities believe the alleged fraud may have allowed the group to siphon funds from municipal systems over an extended period.
Criminal Charges and Court Proceedings
Following the completion of the internal investigation, the City of Tshwane referred the case to the Directorate for Priority Crime Investigation (DPCI), commonly known as the Hawks.
Working alongside the city’s Forensic Unit, investigators gathered evidence that led to criminal charges being brought against four municipal officials and one member of the public.
The accused appeared before the Specialised Commercial Crimes Court on 4 March 2026.
Another former municipal official who had been implicated in the investigation failed to appear in court, prompting authorities to issue a warrant for the individual’s arrest.
One of the officials identified during the investigation resigned before disciplinary proceedings could begin, while the remaining officials are now subject to both internal disciplinary action and criminal prosecution.
City Pledges Recovery of Public Funds
The municipality has indicated that it will pursue the recovery of the allegedly misappropriated funds, depending on the outcome of the criminal case and other legal processes.
Bokaba said the city remains committed to a strict stance against corruption and fraud within its administration.
“The city reaffirms its zero-tolerance stance on fraud and corruption, and remains committed to safeguarding public funds and ensuring that those responsible for wrongdoing are held accountable,” he said.
Anti-Corruption Measures Strengthened
The case forms part of broader efforts by the municipality to strengthen its internal financial controls and anti-corruption systems.
These measures include reviewing payroll fraud detection processes and introducing tighter verification procedures across municipal financial systems to prevent similar schemes in the future.
While investigations continue, the accused individuals have been released on warning, subject to specific court conditions.
The case has been postponed to 29 April 2026, when proceedings are expected to resume.
