Three Convicted for R3 Million Ghost Employee Scheme

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Gauteng: Gauteng Education MEC Matome Chiloane has welcomed the sentencing of two former employees and an external accomplice who were convicted of fraud, forgery, and theft in relation to a R3 million ghost employee scheme.

According to South African Government News Agency, the ghost employee scheme was uncovered through the department’s internal risk investigation, where seven employees from the Human Resources Unit at the Gauteng West District Office were implicated. The scheme defrauded the department of approximately R3 million by creating and processing payments for non-existent employees.

The former employees were sentenced as follows: the first was sentenced to 10 years, with four years suspended, and two six-year sentences to run concurrently. The second former employee received eight years’ imprisonment, while the external accomplice received three years’ imprisonment, suspended for five years.

“This sentencing sends a strong message that fraud and corruption will not be tolerated in our sector. We are encouraged by the collaboration between our internal teams and law enforcement in bringing the perpetrators to justice,” the MEC said on Friday. He emphasised that the department would continue to strengthen internal controls and promote a culture of accountability.

The sentence was handed down on Thursday, 2 October 2025, by the Johannesburg Commercial Crimes Court sitting at the Palm Ridge Magistrate’s Court. “This outcome reaffirms the department’s zero tolerance for fraud and corruption. We commend the diligent work of our internal Risk Management officials who exposed the scheme, as well as the dedicated efforts of the South African Police Service (SAPS) and other law enforcement agencies whose investigations ensured accountability.

“The department remains committed to protecting public funds, safeguarding the integrity of the education system, and taking decisive action against unethical conduct,” Chiloane said.