South Africa's Department of Public Works lost over $16m to cybercriminals in 10 years

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July 10, 2024
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2 min read
cybersecurity
  • Dean Macpherson, the new minister of public works and infrastructure in South Africa, has revealed that cybercriminals have siphoned R300 million (over $16 million) from the department in a period of 10 years.
  • This came to light as the minister and his deputy, Sihle Zikalala conducted assessments of the department's work and received briefings from various branches.
  • "It has become clear that the department has been a soft target and playground for over a 10-year period, and this should have been picked up a lot earlier," the minister revealed. 

He mentioned that the most recent incident occurred in May 2024 when the cybercriminals stole an additional R24 million, leading to full forensic investigation involving the Hawks — the Directorate for Priority Crime Investigation (DPCI) — the South African Police Service, the State Security Agency, and experts in the ICT and cybersecurity industry.

According to him, there is a possibility of collusion between officials and criminals during the extended period of theft.

The minister acknowledged that 30 departmental laptops had been seized by investigators and four people, including three senior managers and one in middle management. 

Additionally, Macpherson expressed that the department has suffered significant financial losses, emphasising the need to hold accountable those responsible for shielding the public from cybercriminals.

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“We also ask the investigators to trace and follow the money and ensure that it is brought back to the coffers of the government,” he said. 

This development has made the department shut down all its payment systems which has reportedly caused delays in paying creditors.

In May 2024, Sihle Zikalala, then serving as minister, engaged the Hawks, South African Police Services, and specialists in the ICT and cyber security sectors to investigate the department’s IT systems.

This was on the heels of the department's banking partners, including Absa and the South African Reserve Bank, identified vulnerabilities. 

Recently, South Africa has faced challenges with cyber attacks. In June 2024, it was reported that the IT systems of the diagnostic service within the National Health Laboratory Service (NHLS) were hacked.

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In the same month, South Africa's oldest bank, First National Bank (FNB), cautioned that cybercriminals are increasingly using advanced phishing tactics to target users of digital wallets.

In March 2024 the Companies and Intellectual Property Commission (CIPC), the body in charge of registering and protecting the rights of businesses in the country, revealed that it experienced an attempted security breach that may have compromised the personal information of its clients and employees.

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