Friday, 25 September 2026 ⚠️ Real Incident

Six Officials Accused of R2.8m Municipal Ghost Payroll Fraud

Six municipal officials, including a suspended municipal manager, appeared in court over an alleged R2.8 million ghost payroll fraud. The scheme involved unauthorized payments made through municipal payroll systems.

What happened

A suspended municipal manager and five colleagues appeared in the Qumbu Magistrate's Court. They face charges relating to an alleged R2.8 million ghost payroll fraud at the Kumkani Mhlontlo Local Municipality. Officials reportedly used municipal payroll systems to process unauthorized payments. Investigations led to court appearances for all six accused.

How it worked

Ghost payroll fraud happens when fake or inactive names are added to an organization's salary list. Fraudsters route official salary payments into controlled bank accounts instead of real workers. Over time, large sums of money are stolen directly from official budgets. Audits and payroll reviews help detect these unauthorized payments.

How to protect yourself

• Regularly audit official payroll lists and report any unfamiliar worker names to municipal authorities.
• Always verify bank account changes for salary or vendor payments through independent contact channels.
• Report suspected municipal corruption or payroll fraud to official anti-corruption hotlines immediately.

Source: news24.com