South Africa's Treasury Initiates Removal of Nearly 9,000 'Ghost Workers' from Government Payroll

National Treasury Targets Payroll Fraud

The South African National Treasury has announced the commencement of a significant initiative to eliminate nearly 9,000 'ghost workers' from the government's payroll. This decisive action, revealed during the Medium-Term Budget Policy Statement (MTBPS) by Minister Enoch Godongwana on Wednesday, November 12, 2025, is part of a broader strategy to enhance fiscal discipline and reduce government waste.

Specifically, 8,854 cases have been flagged as 'high-risk' instances where individuals are suspected of fraudulently receiving salaries. These cases include individuals drawing payments from multiple government departments, inactive employees still on the payroll, or those with suspicious bank account anomalies.

Understanding the 'Ghost Worker' Phenomenon

'Ghost workers' refer to fictitious or non-existent individuals, or even legitimate employees who are no longer active but continue to draw salaries. This phenomenon also encompasses instances where individuals receive multiple payments or where family members are illicitly added to payroll systems to divert funds. The issue has been described as a pervasive form of occupational fraud, undermining the integrity of the public sector and siphoning off critical resources intended for service delivery.

The National Treasury, under the leadership of Director-General Dr. Duncan Pieterse, is collaborating with several key institutions to tackle this problem, including the South African Revenue Service (SARS), the Department of Home Affairs, and the Department of Public Service and Administration (DPSA).

Data-Driven Audit and Financial Implications

The current crackdown employs a sophisticated data-driven audit approach. This involves cross-referencing government payroll data from the Personnel and Salary (PERSAL) system with SARS tax records, the Department of Home Affairs' population register and biometrics, and banking information. This integrated approach aims to detect anomalies more effectively than previous census-based methodologies.

While the exact financial losses due to these ghost workers are still undergoing verification, preliminary estimates suggest that the South African public service could be losing over R3.9 billion annually to fraudulent salary payments. The removal of these fraudulent entries is a core component of the government's Targeted and Responsible Savings (TARS) initiative, which aims to achieve overall savings of R6.7 billion in the 2026 Medium-Term Budget Expenditure Framework. This includes efforts to root out social grant fraud and 'double dipping,' which alone accounts for an estimated R3 billion in potential savings.

Measures for Prevention and Accountability

To ensure long-term prevention and accountability, a binding circular was issued on September 8, 2025, mandating all government departments to conduct full physical verification of every person on their payroll, including interns, board members, and traditional leaders. Departments are required to submit consolidated reports by February 28, 2026. Non-compliant departments face referral to the Portfolio Committee on Public Service and Administration for consequence management. The initiative also emphasizes the importance of stronger digital identity systems, such as smart ID cards and biometric verification, to mitigate future payroll fraud risks.