Latest news with #ghostemployees
Daily Mail
24-07-2025
- Business
- Daily Mail
Manager creates 22 fake employees with perfect attendance to steal £1,600,000 from work
An ambitious HR manager stole more than one and a half million pounds from his Shanghai-based tech company by creating 22 'ghost' employees and pocketing their wages. The scheme, executed by an HR expert known as Yang, started in 2014 and continued for eight years before suspicions were raised. It unravelled only when it became apparent that one of Yang's fake employees, Xiao Sun, who supposedly had perfect attendance during his six-month tenure, had never been seen. Yang stole a total of 16 million yuan (£1,647,800) by directing the ghost workers' salaries, as well as severance pay, to bank accounts that he controlled, according to an Oddity Central report. The publication explained that Yang was solely responsible for the hiring process and the resignation process at the company. As no one ever oversaw Yang's work - no one else was involved in paying employees' salaries - he had free rein to invent the new workers and pay them. And, as the employees were all fictitious, Yang set up multiple bank accounts to receive their pay. Between 2014 and 2022, he 'hired' 22 ghost employees and collected their monthly wages for himself. The scheme fell apart only when someone noticed that one of these employees, who was given the name Xiao Sun, was marked as having perfect attendance during his six months at the company - but had never been seen by anyone. Investigators were notified and they soon traced the scheme to Yang, who didn't take long to admit that he had stolen approximately 16 million yuan (£1,647,800). The fraud paid back 1.1 million yuan (£113,286) while his family returned another 1.2 million yuan (£123585). Yang received a prison sentence of 10 years and two months, was deprived of his political rights for one year and received a fine for embezzlement. A comparable scam was exposed in the UK last June. A mother-of-two who appeared to be a normal IT worker at a Lloyds Bank branch was in fact a 'money addict' who conned her own family and friends in a scam worth half a million pounds. Debt-ridden Annabelle Allan, 29, from Halifax, described herself as a 'hardworking, bubbly, enthusiastic and friendly person' who has a 'thirst for knowledge'. However, the beauty-loving criminal mastermind 'sophisticatedly' used her job as a 'cover' to trick those closest to her - including her own brother - into investing in a fake share scheme. The seemingly intelligent young woman could have earnt an honest living for herself, but instead her 'addiction to money' saw her jailed for four years last week. Bradford Crown Court heard how Allan racked up more than £16,600 worth of debts in her brother's name, which led to him having a County Court judgement made against him. Prosecutor Marte Alnaes said her brother had spent months trying to 'clear his name' and he had no option but to support the police in prosecuting his sister. Allan began her offending back in 2017 when she was said to have been struggling with debt. She was still committing crimes in May last year when she obtained more than £37,000 from customers who thought they were buying vehicles. According to her LinkedIn profile, the 29-year-old started working as a technician at Lloyds Banking Group in September 2015. Prior to that she had worked as an ICT Technician and a Service Desk Advisor. On her profile, she talks about her experience working in IT and says she is 'very good at dealing with customers'. She writes: 'I am very easy to get along with and understand the issues customers are facing when they contact me and I sympathise with this.' Allan also says that she 'thrives off learning new skills' and enjoys participating in hobbies including dancing, going to the gym, skiing and meeting up with friends. It is clear that the mum-of-two was not predicting a spell behind bars for herself as she adds: 'I often get asked where I would like to be in 5-10 years time and honestly I don't have an answer. The only answer I am sure of is that it will be in IT.' Her hobbies include 'dancing, going to the gym, skiing, meeting up with friends, baking, motorbiking and learning new skills'. She writes: 'I am always trying new hobbies with my friends as I love learning and pushing myself to be able to achieve things. I am excited to see where my career within IT takes me as I learn and develop.' It appears that the criminal mastermind also had a passion for all things hair and beauty. Her Companies House shows that she set up the hair and beauty business Annabelle's Beauty Ltd on January 5, 2019, however this went on to be dissolved on November 3, 2021. Her Facebook page shows further details of the beauty business, with a client in 2019 sharing a photo of her lash extensions with the caption: 'Annabelle's made my eyelashes amazing yet again.' Further records show that she set up a second business Annabelle Maisie Trade Ltd, with a registered office in Keighley, West Yorkshire, in January last year. Other posts on her profile present her as family oriented, with several posts from her close relatives calling her 'a beauty', as well as images of her two children. But behind the mask of a 'bubbly' young woman who had a 'thirst of knowledge' lay a much darker mind. On Tuesday, June 18, prosecutor Marte Alnaes outlined details of Allan's offending to the court, which started with her taking out personal loans in her brother's name without his knowledge. Allan set up a business called Annabelle's Beauty Ltd. This Facebook page shows a client in 2019 sharing a photo of her lash extensions Ms Alnaes said between 2017 and 2019, Allan also used her IT position at a Lloyds Bank data centre to devise a 'detailed and convincing' fake share scheme before encouraging family, friends and acquaintances to invest in it. Over that period Allan was said to have obtained just under £500,000, but almost £330,000 had been 'recycled' back to investors. The court heard that some victims had also been reimbursed by Lloyds Bank, but there was still an unaccounted sum of £167,796.40. Allan was said to have forged signatures and sent investors fake letters purporting to be from the police or solicitors. Lloyds Bank investigated Allan's activities in early 2019 and after being suspended she was dismissed four months later. Lloyds Bank investigated Allan's activities in early 2019 and after being suspended she was dismissed four months later. One of Allan's victims said she had given the defendant her life savings and the defendant had shown no remorse just 'crocodile tears'. After police began their investigation into Allan's frauds she was released on bail. But last May she used her position at a car sales firm to advertise vehicles and obtain payments from three unsuspecting customers totalling £37,676. Allan's barrister Gurdit Singh said Allan fell into a 'vicious cycle of debt' after taking out Payday loan when she was 18. Mr Singh said Allan had expressed genuine remorse and recognised the significant impact on her victims. Mr Singh said that some of the victims had in fact submitted character references on behalf of his client and submitted there was a strong prospect of rehabilitation. But Recorder Bryan Cox KC said Allan, who admitted fraud, had shown persistence and a considerable degree of sophistication in her offending. Jailing Allan, he told her: 'You abused your position at Lloyds and you set up a convincing fake Lloyds share scheme. 'You used that scheme to extract money from friends and family and other people you were acquainted with and you effectively used your job as a cover.'
Zawya
04-07-2025
- Politics
- Zawya
Call for Urgent Ghost-Worker Audit in the South African Police Service (SAPS) Crime Intelligence Following Several Arrests
The Chairperson of the Portfolio Committee on Public Service and Administration, Mr Jan de Villiers, on Thursday submitted a formal request to the Minister of Police calling for an independent and immediate audit into ghost employees within the South African Police Service (SAPS) Crime Intelligence Division. This request follows the recent arrest of seven senior officials for serious corruption-related offences. They appeared before the Pretoria Regional Court on charges of fraud and corruption relating to the appointment of an unqualified civilian in a senior post. The arrests, which took place between June and July 2025, involved high-ranking officials responsible for financial oversight, personnel management and internal controls. The list includes: Lt-Gen Dumisani Khumalo (Divisional Commissioner) Maj-Gen Philani Lushaba (Chief Financial Officer) Maj-Gen Josias Lekalakala (Gauteng Crime Intelligence Head) Maj-Gen Nosipho Madondo (Head of Analysis Centre) Maj-Gen Zwelithini Gabela (Technology Services) Brig Dineo Mokwele (Technical Systems) Brig Phindile Ncube (Head of Vetting) Mr de Villiers said these arrests raise grave concerns about systemic corruption within Crime Intelligence, particularly in relation to payroll fraud and the possible existence of 'ghost workers' – non-existent individuals who draw salaries and benefits from the SAPS payroll. In his letter, the Chairperson also refers to the Secret Services Account, a classified budget line intended for covert operations and informant payments, which has historically been flagged as highly vulnerable to abuse. With many of the arrested officials directly responsible for managing this fund, there is serious concern that public resources may have been misappropriated to fund fabricated operatives or fake intelligence activity. 'It is reasonable to expect similar malpractice in payroll management... the possibility of irregular appointments, inflated headcounts and unvetted recruits of 'ghost' employees is high,' said the Chairperson. The formal request also calls for the National Treasury and the Public Service Commission to coordinate an audit of the Crime Intelligence division within 90 days. This audit must focus on verifying headcounts against the number of personnel physically deployed. All Secret Service Account payments, including informant lists and payment records, must also be audited. This request is aligned with the Minister of Finance and the Department of Public Service and Administration's ongoing efforts to identify and remove ghost employees across the public service. The Chairperson also reminded the Minister of Police, Mr Senzo Mchunu, and the rest of SAPS leadership that ghost-worker fraud in government is not isolated. 'It takes sophisticated collusion to create and maintain these ghost-worker employees, who operate like organised criminal syndicates embedded in our government systems,' he said. 'We trust that under Minister Mchunu's leadership, SAPS will use this opportunity to lead by example – rooting out embedded corruption and reclaiming public funds for real intelligence and public safety services.' This urgent audit is not just a matter of financial accountability but also one of restoring public trust in Crime Intelligence and ensuring that South Africa's intelligence-led policing is backed by a credible, ethical and fully functional institution. Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
Mail & Guardian
09-06-2025
- Business
- Mail & Guardian
At least three officials must collude to create one ghost worker, says public service chairperson
Graphic: John McCann/M&G Creating one ghost employee on the public payroll requires the collusion of at least three officials, the chairperson of parliament's portfolio committee on public service and administration said on Monday. Jan de Villiers also said that the era of treating ghost workers as a clerical irregularity was over. 'This is not merely a payroll anomaly. It is a deliberate and orchestrated form of The briefing follows a renewed government focus on eliminating waste and corruption in the public sector wage bill, triggered by Finance Minister Enoch Godongwana's Godongwana announced a sweeping expenditure review of more than R300 billion in government spending since 2013, using a data-driven strategy to root out inefficiencies, including ghost employees. De Villiers said the portfolio committee, acting on this directive, convened on 28 May to interrogate the pervasive and corrosive problem of ghost workers. Its conclusion was that the issue was systemic, criminal and far more widespread than previously acknowledged. 'The department of public service and administration confirmed before parliament that ghost workers are present across all three spheres of government — national, provincial and municipal. They are also embedded in state-owned entities and agencies,' De Villiers said. Among the examples cited were 230 unverifiable employees whose salaries were frozen by the Gauteng department of health in May, and R6.4 million in salaries paid to ghost workers in the Mpumalanga department of education, which was uncovered by the During a September 2024 hearing, the standing committee on public accounts was briefed by the Special Investigating Unit (SIU) on the discovery of 1 277 ghost employees in the Passenger Rail Agency of South Africa's (Prasa) system. According to the SIU, These were not isolated incidents, De Villiers warned. 'The numbers are staggering. They are not anomalies. They are symptoms of a system that needs structural intervention.' The creation of a ghost employee required collusion, De Villiers said. 'At least three officials need to work together to insert a ghost worker into the payroll system. This means we are dealing not with random lapses in judgment, but embedded criminal syndicates.' Although efforts were under way to identify and remove ghost employees through integrated audits between the department and the treasury, De Villiers said more was required. 'A data audit alone is not enough. Every person drawing a public salary must be verified in person and through biometric identification. The public has the right to know the names on the payroll correspond to individuals who really exist and who serve the public,' he said. 'Currently, the three tier authentication system used to validate employee status is open to manipulation. Internal controls have failed. Oversight has been diluted. The opportunity for fraud persists because the tools needed to prevent it have not been enforced, and worse, have been exploited by those meant to protect them.' Departments must take the lead in developing a formalised framework to ensure protection and prevention, and regular audits searching for ghost employees should be carried out, he said. The framework will mandate formal, periodic payroll audits and reconciliation, in person verification and biometric registration, centralised authorisation of appointments and terminations and digital certification of employee attendance and performance. The committee would also call on the auditor general to expand its scope, said De Villiers, requiring that all department and entity audits include a verification of whether internal ghost employees audits have been conducted and whether they were done credibly. 'We will push for disciplinary and criminal action to follow every detection of ghost workers. Names must be handed over to the SIU, the Hawks and the South African Police Service. Fraudsters must not be shielded by departmental silence or internal collusion,' he said. Consequences of inaction were 'grave', he added. 'Every ghost worker represents a post that could have been filled by a qualified graduate, a dedicated nurse, a teacher at a rural school, or a social worker supporting the vulnerable. Every fraudulent salary paid is a step backwards in the fight for a professional, ethical and responsive, responsive state. 'In light of this, the portfolio committee cannot and will not stand idle. Among our priorities in the seventh parliament is to push for the cleanup of the PERSAL system, which remains the foundation of the human resources and vital records in the public sector.' Incomplete performance reviews, poor attendance tracking, and manual leave registers must become early warning indicators, and should trigger automatic investigations. Asked by journalists about the departments most affected by ghost workers, De Villiers said the issue was impossible to localise. 'Every single department, agency, level of government, and state-owned enterprise probably has ghost workers,' he said. But, he added, positions that involved out-of-office work were more easily exploited. He said the lack of uniformity in how public servants were employed — each department using its own HR processes without central oversight — was part of the problem. 'We need a national approach, led jointly by DPSA [department of public service and administration] and treasury, and involving the auditor general, Cogta [department of cooperative governance and traditional affairs] and law enforcement.' The departments would reconvene in the third quarter of 2025 to review progress, scope, preliminary findings, and enforcement mechanisms, De Villiers said. 'This is not going to be another talk shop.'
