GHOST syndicate members were arrested before they could cause further harm.
Thanks to a vigilant principal who detected fraud unfolding before his eyes.
Had it not been for this principal's alertness, the provincial Department of Education could have suffered even greater financial losses at the hands of the ghost worker syndicate.
On Thursday, 2 October, Magistrate Phillip Venter sentenced two former departmental administrators, Kenneth Maredi (43) and Banyala Mokela (50), at the Joburg Commercial Crimes Court in Palm Ridge.
The pair was convicted of fraud, forgery, and theft after defrauding the department of R3,8 million between April 2015 and 2016.
Maredi, described as the scheme's mastermind, received a 10-year prison sentence, with four years suspended, meaning he will serve six years in jail.
Mokela received an eight-year sentence, while Maredi's younger brother, Thabiso Ralethe, was handed a three-year suspended sentence after benefiting only R4 000 from the R99 000 that passed through his account.
Magistrate Phillip Venter stated that the two former administrators "abused their positions of trust and acted out of sheer greed."
"They had collected personal information from community members, used it to create fictitious employees, and then withdrew salaries from these ghost workers.
"The department has not recovered its losses. If it wasn't for a school principal who noticed irregularities in the payroll, this scheme could have gone undetected for much longer," said Venter.
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He also noted that while Maredi eventually pleaded guilty, the state rejected his plea and proceeded with a trial that spanned nearly nine years.
Mokela, on the other hand, showed no remorse, denied knowledge of the stolen funds in her bank account, and even continued with fraudulent activities after Maredi's arrest.
"Statistics show that white-collar crime is on the increase. They acted greedily, colluded to defraud their employer and the citizens, and used the money to fund their lifestyles. Direct imprisonment is the only suitable punishment," Venter concluded.
The scheme was initially uncovered through an internal risk investigation in 2016, which led to the arrests.
Furthermore, five additional officials were implicated and were subsequently dismissed following internal disciplinary procedures.
The dismissals were later challenged at the Public Service Sectoral Bargaining Council, but both the Labour Court and the Labour Appeal Court upheld the department's decision in January 2025.
Reacting to the sentencing, Gauteng Department of Education spokesman Steve Mabona welcomed the verdict.
"We are pleased with the court's decision. This case should serve as a warning to other employees who may be tempted to engage in similar criminal activity. Our principals must remain vigilant and never account for ghost employees," Mabona said.
He revealed that investigations into two additional syndicates, suspected of defrauding the department of millions, are nearing completion and will soon be handed over to law enforcement agencies.
"We will continue to pursue any possible recoveries. Unfortunately, evidence in court showed that none of the stolen funds remain. We will look into attaching any assets linked to the convicted individuals," Mabona added.
