The Labour Appeal Court in Johannesburg has reinstated four Gauteng Department of Education employees after their previous dismissals over R2 million ghost employee fraud allegations were deemed substantively unfair.
"The court finds no credible evidence linking the respondents to the alleged misconduct," stated Judge AD Savage in the ruling, with Judge A Nkutha-Nkontwana and Judge A Govindjee in agreement. "The department's case relies heavily on circumstantial evidence that fails to meet the required burden of proof."
The appeal by the Gauteng Department of Education, which sought to contest a prior arbitration ruling, stemmed from a lengthy saga involving allegations of misconduct that dated back to between 1 January 2014 and 30 November 2015. The employees were charged with being complicit in the appointment and payment of ghost employees, ostensibly fraudulent figures on the department's payroll, which allegedly cost the state approximately R2 million.
Despite the department's claims, during a review hearing, the Labour Court underscored the lack of credible evidence linking the respondents to the theft of state funds, emphasising that although their payroll credentials had been misused, they were unaware of the fraud that a principal personnel officer executed using their passwords. "The evidence presented clearly shows that the respondents were victims rather than perpetrators," the court noted.
The Labour Appeal Court's ruling on the appeal opened with a critical evaluation of the appellant's administrative failings. The State Attorney's office was chastised for the staggering 11-month delay in filing necessary documentation, raising concerns over their organisational capabilities and professional standards. "Such delays not only undermine the administration of justice but also place unnecessary burden on public resources," the judgment stated.
The Gauteng Education Department must reinstate employees who were fired for being complicit in the appointment and payment of ghost employees.
The officials had maintained their innocence, saying they had repeatedly changed their passwords every month and had no idea how their credentials were repeatedly obtained by Kenneth Mothlang, who had since been criminally charged and convicted for orchestrating the fraudulent scheme. The 2013 Gauteng User ID and Password Policy clearly mandated that employees must guard their passwords, yet the court noted that this had been overlooked in drafting the misconduct charges by the department. The employees argued that they had actively participated in the investigation which led to Mothlang's dismissal and subsequent criminal conviction.
Ultimately, the Labour Appeal Court not only reinstated the employees but also highlighted the importance of fair disciplinary processes within government entities. It overturned the Labour Court's decision, illustrating that the findings of the arbitrator had not only been reasonable but were indeed compelled by the evidence presented during arbitration.
Timeline of Key Events
January 2014: Initial fraudulent activities begin.
November 2015: Fraud discovered and investigation launched.
2016: Officials dismissed from their positions
2017: Initial arbitration proceedings.
2025: Labour Appeal Court final ruling
