The City of Tshwane has placed several officials from its Finance Department on precautionary suspension following allegations that they were involved in a fraudulent refund scheme that siphoned money from municipal accounts.
According to a statement issued by the city on 12 March 2026, the suspensions form part of efforts to protect public funds and ensure accountability while criminal proceedings against the suspects continue in court.
The alleged fraud came to light during an internal investigation that began in May 2023 after suspicious refund payments were detected across multiple municipal accounts. Acting on a request from the Finance Department, the city’s Forensic Unit launched a detailed review of refund processes within the Revenue Management Division.
The investigation found evidence of irregular transactions and initially identified seven officials as suspects. Further analysis later narrowed the focus to an alleged organised syndicate made up of four city officials working together with external accomplices.
According to the city, the group allegedly targeted municipal accounts that had credit balances and passed the account details to partners outside the municipality. These partners then reportedly submitted fraudulent refund requests while impersonating legitimate account holders.
“The investigation confirmed that irregular transactions had occurred,” the statement said.
Authorities believe the refunds were ultimately paid into a single private bank account belonging to a member of the public, which was allegedly used to channel the funds out of the municipal system.
One of the implicated officials resigned before disciplinary proceedings could begin, while the remaining suspects became the subject of both internal disciplinary action and criminal investigations.
The matter was later referred to the Directorate for Priority Crime Investigation (DPCI) under Pretoria Central CAS 609/09/2023. Working together with the city’s Forensic Unit, investigators gathered evidence that led to criminal charges being laid.
Four Tshwane officials and one member of the public appeared before the Specialised Commercial Crimes Court on 4 March 2026. Another former official failed to appear in court, resulting in a warrant of arrest being issued.
“The suspects were released on warning, subject to court conditions,” the city confirmed.
The case has been postponed to 29 April 2026.
Investigators have so far identified approximately R1.585 million in suspected fraudulent refund transactions linked to the scheme. The city said steps to recover the funds would be taken in line with the outcome of the court process and applicable legal frameworks.
The City of Tshwane reiterated its zero-tolerance approach to fraud and corruption and said it remains committed to protecting public resources and strengthening its anti-corruption measures within municipal financial systems. The investigation forms part of broader efforts by the municipality to improve oversight mechanisms, including payroll fraud detection reviews and enhanced financial verification control.
About The Author
